Vertical Analysis of Income Statement For 20Y2, 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, 20Y2 and 20Y1 202 201 Sales $476,000 $409,000 Cost of merchandise sold 214,200 204,500 Gross profit $261,800 $204,500 Selling expenses $95,200 $77,710 Administrative expenses 47,600 49,080 Total operating expenses $142,800 $126,790 Income from operations $119,000 $77,710 Other revenue 19,040 16,360 Income before income tax expense $138,040 $94,070 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, 20Y2 and 20Y1 20Y2 20Y2 201 21 Amount Percent Amount Percent Sales $476,000 %% 5409,000 Cost of merchandise sold 214,200 % 204,500 Gross profit $261,800 % $204,500 % Selling expenses $95,200 % $77,710 % Administrative expenses 47,600 49,080 Total operating expenses $142,800 % $126,790 % Income from operations $119,000 $77,710 % Other revenue 19,040 16,360 Income before income tax expense $138,040 $94,070 Income tax expense 57,120 36,810 Net income $80,920 $57,260 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise 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.