Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $14,000 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 Income tax expense 20Y2 20Y1 $506,000 $435,000 268,180. 256,650 $237,820 $178,350 $106,260 $87,000 55,660 56,550 $161,920 $143,550 $75,900 $34,800 15,180 26,100 $91,080 $60,900 35,420 26,100 $55,660 $34,800 Net income. Required: Pranare a comparative income statema arind presenting an analysis of each item in relationshin to eales for each . Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each f 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 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $506,000 % $435,000 % Cost of goods sold 268,180 % 256,650 % Gross profit $237,820 % $178,350. Selling expenses $106,260 % $87,000 %% Administrative expenses 55,660 96 56,550 % Total operating expenses $161,920 % $143,550 % Income from operations $75,900 % $34,800 % Other revenue 15,180) % 26,100 Income before income tax $91,080 % $60,900 % % Income tax expense 35,420 % 26,100 % Net income $55,660 % $34,800 % 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 i The sales Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 2012 Percent 20Y1 Amount 20Y1 Percent Sales $506,000 % $435,000 % Cost of goods sold 268,180 % 256,650 % Gross profit $237,820 % $178,350 % Selling expenses $106,260 6 $87,000 % Administrative expenses 55,660 % 56,550 % Total operating expenses $161,920 % $143,550 % Income from operations $75,900 % $34,800 % Other revenue 15,180 % 26,100 % Income before income tax $91,080 % $60,900 % Income tax expense 35,420 % 26,100 % Net income $55,660 % $34,800 % 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