Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 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, 2012 and 2011 2012 2011 Sales $1,500,000 510,000 $990,000 $1,250,000 475,000 Cost of goods sold Gross profit $270,000 Selling expenses Administrative expenses $775,000 $200,000 156,250 180,000 $450,000 $356,250 Total operating expenses Income from operations $540,000 60,000 Other revenue $418,750 50,000 $468,750 375,000 Income before income tax $600,000 450,000 Income tax expense Net income $150,000 $93,750 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 percentages to one decimal place. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 Amount 20Y2 Percent 2011 Amount 2011 Percent Sales $1,500,000 % $1,250,000 % Cost of goods sold 510,000 % 475,000 % Gross profit $990,000 % $775,000 % $270,000 % 90 Selling expenses Administrative expenses $200,000 156,250 180,000 % $450,000 % $356,250 Total operating expenses Income from operations % $418,750 % $540,000 60,000 Other revenue % 50,000 96 Income before income tax 9% $468,750 % $600,000 450,000 Income tax expense % 375,000 % Net income $150,000 % $93,750 %