Vertical analysis of income statement

Final Question Comment on the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales percentage points, and administrative expenses y 5.40 percentage points, while selling expenses Thus, net income as a percent of sales by 4.00 by 3.00 pero by 4.20 percentage points. increased decreased Instructions Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Prepare an income stalernent in coparalive form, slaing each tern for both years as a percent of sales. Round your percentages answers to one docima pace. Entor al arnouts as positive numbors. Sales Cost of goods sold Selling expenses Administrative experises Income tax expense Current YearPrevious Year $3,500,000 1,925,000 553,000 441,000 $ 3,900,000 2,356,600 460,200 600.400 Innovation Quarter Inc. Comparative Income Statement For the Years Ended Decomber 31 210,600 196.000 Current year Current year Previous year Previous year A. Prepare an incone stalemernt in comparaive form, stating cach ilerm for both Amount Percent Amount Percent years as a percent of sales. Round your percontages answors to one decimal place. Enter al amounts as positive numbers. Sales Cost of goods sold Gross profit Selling expenses Administrative expenses $3,900,00000 2.355,60000 $1,544,40D.00 $46020000 608,40000 1068,600.00 $475,800.00 210,60000 $265,200.00 100.0% 60.4% 396% $3,500,000.00 1,925,000.00 $1,575,000.00 $553,000.00 441,000.00 $994,00000 $581,000.00 196,00000 $385,000.00 100.0% 55.0% 45.0% 3 4 B. CoTnont on the significant changes disclosed by the comparative icome S statement 6 8 Total operating expenses 9 Income fram operations 10ncome tax expense 1 Net income