This is ONE question. Please see ALL 2 photos, click on the photo if you have to. Don't forget to do QUESTION 2 with the fill in the blanks. Please see the bottom for the options.

Options:

Answer 1: improved/deteriorated

Answer 2: increased/decreased

Answer 3: successful/unsuccessful

Answer 4: increased/decreased

Answer 5: increased/decreased

Answer 6: increased/decreased

Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $18,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 20Y1 Sales $648,000 311,040 $557,000 295,210 Cost of goods sold Gross profit $336,960 $129,600 $261,790 $105,830 Selling expenses Administrative expenses 71,280 72,410 Total operating expenses $200,880 $178,240 Income from operations $136,080 $83,550 Other income 32,400 16,710 Income before income tax $168,480 64,800 Income tax expense $100,260 38,990 $61,270 Net income $103,680 Required: 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 Amount 20Y2 Percent 2011 Amount 20Y1 Percent $648,000 $557,000 Sales Cost of goods sold 311,040 295,210 Gross profit $336,960 $261,790 129,600 105,830 Selling expenses Administrative expenses 72,410 Total operating expenses $200,880 $178,240 Income from operations $136,080 $83,550 Other income 32,400 16,710 Income before income tax $168,480 $100,260 38,990 Income tax expense 64,800 Net Income $103,680 $61,270 2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) sales. As a result, net income as a percentage of sales The sales promotion campaign appears to have been expenses as a percent of sales slightly, the cost was more than made up for by as a percentage of . While selling sales