Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that indluded the expenditure of an additional $16,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the folowing condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 200Y2 and 20Y1 202 201 Sales $573,000 $493,000 Cost of goods sold 292,230 276,080 Gross profit $280,770 $216,920 Selling expenses $114,600 $93,670 Administrative expenses 57,300 59,160 Total operating expenses $171,900 $152,830 Income from operations $108,870 $64,090 Other revenue 22,920 19,720 Income before income tax: $131,790 $83,810 Income tax expense 51,570 34,510 $80,220 $49,300 Net income 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 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $573,000 $493,000 Cost of goods sold 292,230 276,080 Gross proft $280,770 $216,920 Seling expenses $114,600 $93,670 Administrative expenses 57,300 59,160 Total operating expenses $171.900 $152,830 Income from operations $108,870 64,090 Other revenue 22,920 19,720 Income before income tax $131,790 $83,810 Income tax expense 51,570 34,510 $80,220 $49.300 Net income 2. The vertical analysis indicates that the costs other than seling 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