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

	Current Year		Previous Year
Sales	$617,000		$518,000
Cost of goods sold	357,860		264,180
Selling expenses	104,890		103,600
Administrative expenses	111,060		88,060
Income tax expense	18,510		25,900

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	$617,000	%	$518,000	%
Cost of goods sold	357,860	%	264,180	%
	$	%	$	%
Selling expenses	104,890	%	103,600	%
Administrative expenses	111,060	%	88,060	%
	$	%	$	%
		%		%
Income tax expense	18,510	%	25,900	%
	$	%	$	%

b. The vertical analysis indicates that the cost of goods sold as a percent of sales ______ by 7 percentage points, while selling expenses _______ by 3 percentage points, and administrative expenses _____ by 1 percentage points. Thus, net income as a percent of sales _________ by 3 percentage points.