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

	Current Year	Previous Year
Sales	$542,000		$493,000
Cost of merchandise sold	341,460		285,940
Selling expenses	81,300		83,810
Administrative expenses	86,720		73,950
Income tax expense	10,840		19,720

Question Content Area

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.

	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Sales	$542,000	fill in the blank 40bf7b01d07ef95_1%	$493,000	fill in the blank 40bf7b01d07ef95_2%
Cost of merchandise sold	341,460	fill in the blank 40bf7b01d07ef95_3%	285,940	fill in the blank 40bf7b01d07ef95_4%
Gross Profit	$Gross profit	Gross profit%	$Gross profit	Gross profit%
Selling expenses	81,300	fill in the blank 40bf7b01d07ef95_10%	83,810	fill in the blank 40bf7b01d07ef95_11%
Administrative expenses	86,720	fill in the blank 40bf7b01d07ef95_12%	73,950	fill in the blank 40bf7b01d07ef95_13%
Total operating expenses	$Total operating expenses	Total operating expenses%	$Total operating expenses	Total operating expenses%
Income from operations	Income from operations	Income from operations%	Income from operations	Income from operations%
Income tax expense	10,840	fill in the blank 40bf7b01d07ef95_24%	19,720	fill in the blank 40bf7b01d07ef95_25%
Net income	$Net income	Net income%	$Net income	Net income%