Vertical Analysis of Income Statement For 2012, Flelder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement: Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 202 201 Sales $1,300,000 $1,180,000 Cost of goods sold 682,500 613,600 Gross profit $617,500 $566,400 Selling expenses $260,000 $188,800 Administrative expenses 169,000 177,000 Total operating expenses $429,000 $365,800 Income from operations. $188,500 $200,600 Other revenue 78,000 70,800 Income before income tax $266,500 $271,400 Income tax expense 117.000 106,200 Net income $149,500 $165,200 Required: 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. Round to one decimal place. Enter all amounts as positive numbers Fielder Industries Inc Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $1,300,000 $1,180,000 Cost of goods sold 682,500 613,600 Gross profit $617.500 $566.400 Selling expenses $260,000 $188.800 Administrative expenses 169.000 177,000 Total operating expenses $429,000 $365,800 Income from operations $188.500 $200,600 Other revenue 78,000 70,800 Income before income tax $266,500 $271,400 Income tax expense 117,000 106.200 Net income $149,500 $165,200 2. The net income as a percent of sales has All the costs and expenses, other than selling expenses, have maintained their approximate cost as a percent of sales between 20Y1 and 20Y2. Selling expenses as a percent of sales, however, have . Apparently, the new advertising campaign vbeen successful. The increased expense produced sufficient sales to maintain relative profitability. Thus, selling expenses as a percent of sales have