Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $454,000 $381,000 Cost of merchandise sold 258,780 198,120 Selling expenses 77,180 72,390 Administrative expenses 86,260 64,770 Income tax expense 13,620 19,050 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.

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 2 percentage points. Thus, net income as a percent of sales by 5 percentage points, while selling expenses by 3 percentage points. by 2 percentage points, and administrative expenses