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 2041 20Y2 2011 Sales $455,000 $391,000 Cost of goods sold 241,150 226,780 Gross profit $213,850 $164,220 Selling expenses Administrative expenses $95,550 $78,200 50,050 50,830 Total operating expenses Income from operations $145,600 $129,030 $68,250 Other revenue $350190 27,300 Income before income tax $95,550 Income tax expense 19,550 $54,740 23,460 36,400 Net income $59,150 Required: $31,280 De % 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 2011 2012 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $455,000 96 $391,000 % Cost of goods sold 241,150 226,780 % Gross profit $213,850 96 $164,220 % Selling expenses $95,550 % $78,200 % Administrative expenses 50,050 % 50,830 % Total operating expenses $145,600 % $129,030 % Income from operations $68,250 96 $35,190 % Other revenue 27,300 96 19,550 % Income before income tax $95,550 % $54,740 % Income tax expense 36,400 % 23,460 % Net Income $59,150 % $31,280 % 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. 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 2041 20Y2 2011 Sales $455,000 $391,000 Cost of goods sold 241,150 226,780 Gross profit $213,850 $164,220 Selling expenses Administrative expenses $95,550 $78,200 50,050 50,830 Total operating expenses Income from operations $145,600 $129,030 $68,250 Other revenue $350190 27,300 Income before income tax $95,550 Income tax expense 19,550 $54,740 23,460 36,400 Net income $59,150 Required: $31,280 De % 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 2011 2012 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $455,000 96 $391,000 % Cost of goods sold 241,150 226,780 % Gross profit $213,850 96 $164,220 % Selling expenses $95,550 % $78,200 % Administrative expenses 50,050 % 50,830 % Total operating expenses $145,600 % $129,030 % Income from operations $68,250 96 $35,190 % Other revenue 27,300 96 19,550 % Income before income tax $95,550 % $54,740 % Income tax expense 36,400 % 23,460 % Net Income $59,150 % $31,280 % 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