The vertical analysis of the income statement of Bates, Inc. is as shown below. Bates, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018 Bates, Inc. Comparative Income Statement Years Ended December 31, 2019 and 2018 Percent of Total (In millions) Net Sales Cost of Goods Sold 2019 $6,355 3.370 Percent of Total 100.0% 44.7 2018 $4,920 2.200 100.0% 53.0 O A. increased by 47.0% over the previous year OB. 47.0% of net sales revenue O C. equal to 47.0% of net income OD. 47.0% of cost of goods sold 2,985 47.0 2.720 55.3 10.6 580 6.5 425 675 410 1,085 1,900 11.8 8.6 20.4 34.9 17.1 1,005 1,715 29.9 Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses) Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income (400) (6.3) (400) (6.3) 23.6 1,500 230 $1,270 (695) (695) 1,020 210 $810 (14.1) (14.1) 20.7 4.3 16.5% 3.6 20.0% O A. increased by 47.0% over the previous year OB. 47.0% of net sales revenue O C. equal to 47.0% of net income OD. 47.0% of cost of goods sold 675 10.6 11.8 0.5 8.6 17.1 20.4 34.9 Operating Expenses Selling Expenses 580 Administrative Expenses 410 425 Total Operating Expenses 1,085 1,005 Operating Income 1,900 29.9 1,715 Other Income and (Expenses): Interest Expense (400) (6.3) (695) Total Other Income and (Expenses) (400) (6.3) (695) Income Before Income Taxes 1,500 23.6 1,020 Income Tax Expense 230 210 Net Income $1,270 20.0% $810 The figure 47.0% shown for gross profit in 2019 signifies that the gross profit is (14.1) (14.1) 20.7 4.3 16.5% 3.6 O A. increased by 47.0% over the previous year OB. 47.0% of net sales revenue O C. equal to 47.0% of net income OD. 470% of cost of goods sold