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

	Current Year		Previous Year
Sales	$578,000		$509,000
Cost of goods sold	393,040		320,670
Selling expenses	75,140		76,350
Administrative expenses	80,920		66,170
Income tax expense	11,560		20,360

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	$578,000	%	$509,000	%
Cost of goods sold	393,040	%	320,670	%
	$	%	$	%
Selling expenses	75,140	%	76,350	%
Administrative expenses	80,920	%	66,170	%
	$	%	$	%
		%		%
Income tax expense	11,560	%	20,360	%
	$	%	$	%

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.