Vertical Analysis of Income Statement

For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $17,000 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
	20Y2		20Y1
Sales	$614,000		$528,000
Cost of goods sold	313,140		295,680
Gross profit	$300,860		$232,320
Selling expenses	$128,940		$105,600
Administrative expenses	67,540		68,640
Total operating expenses	$196,480		$174,240
Income from operations	$104,380		$58,080
Other revenue	24,560		15,840
Income before income tax	$128,940		$73,920
Income tax expense	49,120		31,680
Net income	$79,820		$42,240

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	$614,000	%	$528,000	%
Cost of goods sold	313,140	%	295,680	%
Gross profit	$300,860	%	$232,320	%
Selling expenses	$128,940	%	$105,600	%
Administrative expenses	67,540	%	68,640	%
Total operating expenses	$196,480	%	$174,240	%
Income from operations	$104,380	%	$58,080	%
Other revenue	24,560	%	15,840	%
Income before income tax	$128,940	%	$73,920	%
Income tax expense	49,120	%	31,680	%
Net income	$79,820	%	$42,240	%