Sales $567,600 $440,000 Cost of merchandise sold 482,600 380,000 Gross profit $85,000 $60,000 Selling expenses $24,990 $21,000 Administrative expenses 22,860 18,000 Total operating expenses $47,850 $39,000 Income before income tax expense $37,150 $21,000 Income tax expenses 14,900 Net income $22,250 8,400 $12,600 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Sales Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $567,600 $440,000 $ % Cost of merchandise sold 482,600 380,000 % Gross profit $85,000 $60,000 % Selling expenses $24,990 $21,000 % Administrative expenses 22,860 18,000 % Total operating expenses $47,850 $39,000 % Income before income tax expense Income tax expense $37,150 $21,000 % 14,900 8,400 % Net income $22,250 $12,600 %