Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $584,000 $514,000 Cost of merchandise sold 338,720 262,140 Selling expenses 99,280 102,800 Administrative expenses 105,120 87,380 Income tax expense 17,520 25,700 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. It required, round percentages to one decimal place. inter 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 $584,000 $514,000 Cost of merchandise sold 338,720 262,140 O Selling expenses 99,280 ***** 102,800 Administrative expenses 105,120 87,380 % 105,120 Administrative expenses % 87,380 % % % % % Income tax expense 17,520 % 25,700 % % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales expenses by 3 percentage points, and administrative expenses a percent of sales by 3 percentage points by 7 percentage points, while selling by 1 percentage points. Thus, net income as