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

	Current Year		Previous Year
Sales	$408,000		$367,000
Cost of goods sold	265,200		220,200
Selling expenses	57,120		58,720
Administrative expenses	61,200		51,380
Income tax expense	8,160		14,680

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	$408,000	%	$367,000	%
Cost of goods sold	265,200	%	220,200	%
	$	%	$	%
Selling expenses	57,120	%	58,720	%
Administrative expenses	61,200	%	51,380	%
	$	%	$	%
		%		%
Income tax expense	8,160	%	14,680	%
	$	%	$	%

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.