Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $395,000 $332,000 Cost of merchandise sold 229,100 175,960 Selling expenses 67,150 63,080 Administrative expenses 71,100 56,440 Income tax expense 11,850 13,280 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 $395,000 % $332,000 % Cost of merchandise sold 229,100 175,960 % % % % Selling expenses 67,150 % 63,080 % Administrative expenses 71,100 % 56,440 % % % % % Income tax expense 11,850 % 13,280 % % % by 2 percentage points, and administrative expenses b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 1 percentage points. Thus, net income as a percent of sales by 5 percentage points, while selling expenses by 3 percentage points