Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

	Current Year		Previous Year
Sales	$476,000		$405,000
Cost of goods sold	323,680		255,150
Selling expenses	61,880		60,750
Administrative expenses	66,640		52,650
Income tax expense	9,520		16,200

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

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Sales	$476,000	%	$405,000	%
Cost of goods sold	323,680	%	255,150	%
	$	%	$	%
Selling expenses	61,880	%	60,750	%
Administrative expenses	66,640	%	52,650	%
	$	%	$	%
		%		%
Income tax expense	9,520	%	16,200	%
	$	%	$	%

b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 5 percentage points, while selling expenses by 2 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 2 percentage points.