Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: (a) Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. (b) Comment on the significant changes disclosed by the comparative income statement. Comment on the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales increased by 10% between the two years. Selling and administrative expenses as a percentage of sales decreased by 5%, and income tax expense decreased by 2%. Overall, net income as a percent of sales dropped by 3%. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31, Year 2 and Year 1 1 Year 2 Year 2 Year 1 Year 1 2 Amount Percent Amount Percent 3 Sales $500,000.00 100.0% $440,000.00 100.0% 4 Cost of goods sold 325,000.00 65.0 242,000.00 55.0 5 Gross profit $175,000.00 35.0% $198,000.00 45.0% 6 Selling expenses $70,000.00 14.0% $79,200.00 18.0% Administrative expenses 75,000.00 15.0 70,400.00 16.0 8 Total expenses $145,000.00 29.0% $149,600.00 34.0% 9 Income from operations $30,000.00 6.0% $48,400.00 11.0% 10 Income tax expense 10,500.00 2.0 16,400.00 4.0 11 Net income $19,500.00 4.0% $32,000.00 7.0%