Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included...

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Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $12,000 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 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax 20Y2 20Y1 $446,000 $384,000 236,380 222,720 $209,620 $161,280 $89,200 $72,960 49,060 49,920 $138,260 $122,880 $71,360 $38,400 26,760 23,040 $98,120 $61,440 40,140 23,040 $57,980 $38,400 Income tax expense Net income 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. Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $12,000 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 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax 20Y2 20Y1 $446,000 $384,000 236,380 222,720 $209,620 $161,280 $89,200 $72,960 49,060 49,920 $138,260 $122,880 $71,360 $38,400 26,760 23,040 $98,120 $61,440 40,140 23,040 $57,980 $38,400 Income tax expense Net income 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.