Sales Cost of goods sold Gross profit Selling expenses Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year Amount year Amount (Decrease) Amount (Decrease) Percent $2,240,000 $2,000,000 $ 240,000 12 % (1,925,000) (1,750,000) 175,000 10 % $315,000 $250,000 65,000 26 % $(152,500) $(125,000) % Administrative expenses (118,000) (100,000) 18,000 18 > % Total operating expenses $(270,500) $(225,000) 45,500 200 % Income before income tax expense $44,500 $25,000 $ 19,500 78 % Income tax expense (17,800) (10,000) 7,800 78 % Net income $26,700 $15,000 $ 11,700 78 %