Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $20,000 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 2011 Sales $717,000 $617,000 329,820 308,500 $387,180 $308,500 $143,400 $117,230 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income 78,870 80,210 $222,270 $197,440 $111,060 $164,910 35,850 18,510 Income before income tax $200,760 $129,570 Income tax expense 78,870 49,360 Net income $121,890 $80,210 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 2042 Percent 20Y1 Amount 20Y1 Percent $717,000 $617,000 Sales Cost of goods sold 329,820 308,500 Gross profit $387,180 $308,500 Selling expenses 143,400 117,230 Administrative expenses 78,870 80,210 Total operating expenses $222,270 $197,440 Income from operations $164,910 $111,060 Other income 35,850 18,510 Income before income tax $200,760 $129,570 Income tax expense 78,870 49,360 Net income $121,890 $80,210 2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales