Vertical Analysis of Income Statement For 20Y2, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement: Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 Sales $1,300,000 682,500 $1,180,000 613,600 Cost of goods sold Gross profit $617,500 $566,400 Selling expenses $260,000 $188,800 Administrative expenses 169,000 177,000 Total operating expenses $429,000 $365,800 Income from operations $188,500 $200,600 Other revenue 78,000 70,800 Income before income tax $266,500 $271,400 Income tax expense 117,000 106,200 Net income $149,500 $165,200 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. Round to one decimal place. Enter all amounts as positive numbers. Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 2012 Percent 20Y1 Amount 20Y1 Percent Sales $1,300,000 % $1,180,000 % Cost of goods sold 682,500 % 613,600 % Gross profit $617,500 % $566,400 % Selling expenses $260,000 % $188,800 % Administrative expenses 169,000 % 177,000 % Total operating expenses $429,000 % $365,800 % Income from operations $188,500 % $200,600 % Other revenue 78,000 % 70,800 % Income before income tax $266,500 % $271,400 % Income tax expense 117,000 % 106,200 % Net income $149,500 % $165,200 % 2. The net income as a percent of sales has All the costs and expenses, other than selling expenses, have maintained their approximate cost as a percent of sales between 2011 and 20Y2. Selling expenses as a percent of sales, however, have . Apparently, the new advertising campaign been successful. The increased expense produced sufficient sales to maintain relative profitability. Thus, selling expenses as a percent of sales have