Vertical Analysis of income Statement For 2012. m Comic Company initiated as promotion campaign trutindused the expenditure of an additional 21.00 for adventing the end of the year, the president is presented with the following condensed comparative income statement Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 2012 2011 Sales 57.000 5657.000 Cout of merchandise old 44,00 17,630 Cross profit 5359.080 $260.370 Selling expenses $145,160 5110260 Adminstrative expenses 76.400 78.840 Total operating expenses 3221.560 $197.100 Income from operations $137,520 572,270 Other revenue 30,560 19.710 Income before income tax expense $16.00 $91.980 Income tax expense 68.760 39.420 Net income 599, 120 S52.560 Required: 1. Prepare a comparative Income statement for the two year period, presenting analysis of each item in relationship to sales for each of the yearsThe percentages as whole numbers, tree amounts as positive numbers Senat amounts as positive numbers Tri-Comic Company Comparative Income Statement For the Years Ended December 1, 2012 and 2041 2012 2012 2041 2041 Amount Percent Amount percent Sales $764,000 5657,000 Cost of merchandise sold 104.920 $269,170 Gross profit Selling experien Administrative $350.000 $145,160 400 $118.260 70,00 $197.100 572,270 19,710 Total operating expenses 21.500 Income from operations 5137,20 Other revenue 30,560 Income before income tax expense $160.000 Income tax expense 6760 Net Income 399320 39.420 552560 16 2. The vertical analysis indicates that the cost other than selling expenses (cost of merchandise sold and administrative pense percentage of sales. As ar net me percentage of sales The sales promotion campaign appears to have been While sing expenses as a percent of Mighty cost was more than made up for by