Show Me How Calculator Print Item Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year $982,500 825,600 $156,900 $47,190 42,570 $89,760 $67,140 26,900 $40,240 Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income $750,000 640,000 $110,000 $39,000 33,000 $72,000 $38,000 15,200 $22,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the cu compared with the previous year. If required, round to orie decimal place Winthrop Company Comparative Income Statement Show Me How Print Item with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 yearyear (Decrease) (Decrease) Amount Amount AmountPercent Sales $982,500 $750,000 Cost of goods sold 825,600 640,000 )% Gross profit $156,900 $110,000 $47,190 $39,000 Administrative expenses 42,570 33,000 Total operating expenses $89,760 $72,000 Income before income tax $67,140 $38,000 Income tax expense 26,900 15,200 $40,240 s22,800 Selling expenses Net income b. The net income for Winthrop Company increased between years. This increase was the combined-result of an in sales and percentage in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage Increase in sales. KOTF.psd 2018-11...53.53 PM png pg