Vertical Analysis of Income Statement For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $13,000 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 2041 20Y2 20Y1 Sales $409,000 Cost of merchandise sold $476,000 214,200 $261,800 204,500 Gross profit $ 204,500 $95,200 Selling expenses Administrative expenses 577.710 49,080 47,600 $126,790 Total operating expenses Income from operations $142,800 $119,000 577,710 Other revenue 19,040 16,360 Income before income tax expense $138,040 594,070 Income tax expense 57,120 36,810 Net income $80,920 $57,260 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, 2012 and 2041 20Y2 2012 2011 2011 Amount Percent Amount Percent Sales $476,000 % $409,000 % Cost of merchandise sold 214,200 96 204,500 Gross profit $261,800 % $204,500 % Selling expenses 595,200 96 % $77.710 49,080 Administrative expenses 47,600 Total operating expenses $142,800 % $126,790 % Income from operations $119,000 $77,710 Other revenue 19,040 16,360 % 96 $94,070 96 Income before income tax expense $138,040 Income tax expense 57,120 Net income 580,920 96 36,810 $57,260 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 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise sold and administrative expenses) slightly, the cost was more than made up for by sales