Revenue and expense data for Gresham Inc. are as follows:

	Current Year	Previous Year
Sales	$ 2,920,000	$2,150,000
Cost of goods sold	1,769,520	1,182,500
Selling expenses	332,880	322,500
Administrative expenses	449,680	279,500
Income tax expense	169,360	116,100

	Required:
A.	Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers.
B.	Comment on the significant changes disclosed by the comparative income statement.

Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers.

Gresham, Inc.

Comparative Income Statement

For the Years Ended December 31, 20-- and 20--

1		Current year	Current year	Previous year	Previous year
2		Amount	Percent	Amount	Percent
3	Sales	$2,920,000.00		$2,150,000.00
4	Cost of goods sold	1,769,520.00		1,182,500.00
5	Gross profit	$1,150,480.00		$967,500.00
6	Selling expenses	$332,880.00		$322,500.00
7	Administrative expenses	449,680.00		279,500.00
8	Total operating expenses	$782,560.00		$602,000.00
9	Income from operations	$367,920.00		$365,500.00
10	Income tax expense	169,360.00		116,100.00
11	Net income	$198,560.00		$249,400.00

The vertical analysis indicates that the cost of goods sold as a percent of sales ? by 5.60 percentage points, while selling expenses ? by 3.60 percentage points, and administrative expenses ? by 2.40 percentage points. Thus, net income as a percent of sales ? by 4.80 percentage points.