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

   	Current Year		Previous Year
   Sales	$571,000		$480,000
   Cost of goods sold	308,340		220,800
   Selling expenses	102,780		105,600
   Administrative expenses	114,200		91,200
   Income tax expense	17,130		24,000

   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	$571,000	%	$480,000	%
   Cost of goods sold	308,340	%	220,800	%
   	$	%	$	%
   Selling expenses	102,780	%	105,600	%
   Administrative expenses	114,200	%	91,200	%
   	$	%	$	%
   		%		%
   Income tax expense	17,130	%	24,000	%
   	$	%	$	%

   b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 8 percentage points, while selling expenses by 4 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points.