Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income Comparative Income Statement For the Years Ended December 31 Current Previous year Amount year Amount Decrease Amount Decrease Percent 2 240 000 2 000 000 1 925 000 1 750 000 315 000 250 000 152 500 125 000 118 000 100 000 270 500 225 000 44 500 25 000 17 800 10 000 26 700 15 000 percentage increase in calor Increase Increase 1 b The net income for Winthrop Company increased between years This increase was the combined result of an and a in cost of goods sold The cost of goods sold increased at a percentage rate than the increase in sales thus causing the percentage increase in gross profit to be in salles than the