Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Previous Year Sales Current Year $4,000,000 2,280,000 $3,600,000 Cost of goods sold 1,872,000 600,000 Selling expenses Administrative expenses 648,000 360,000 520,000 Income tax expense 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Current year Amount Percent Previous year Previous year Amount Percent Sales $4,000,000 % $3,600,000 Cost of goods sold (2,280,000) (1,872,000) OPPORT Selling expenses $(600,000) $1600, $(648,000) Administrative expenses (520,000) (360,000) Income tax expense (240,000) (216,000) by 3 percentage points, and administrative expenses b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points. Thus, net income as a percent of sales by 5 percentage points, while selling expenses by 5 percentage points