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

	Current Year		Previous Year
Sales	$388,000		$349,000
Cost of goods sold	248,320		205,910
Selling expenses	54,320		55,840
Administrative expenses	62,080		52,350
Income tax expense	7,760		13,960

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	$388,000	%	$349,000	%
Cost of goods sold	248,320	%	205,910	%
Gross profit	$	%	$	%
Selling expenses	54,320	%	55,840	%
Administrative expenses	62,080	%	52,350	%
Total operating expenses	$	%	$	%
Income from operations		%		%
Income tax expense	7,760	%	13,960	%
Net income	$	%	$	%

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.