Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 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 2012 2011 Sales $759,000 $653,000 Cost of goods sold 341,550 333,030 Gross profit $417,450 $319,970 Selling expenses $159,390 $130,600 83,490 84,890 Administrative expenses Total operating expenses $242,880 $215,490 Income from operations $174,570 $104,480 Other revenue 45,540 19,590 Income before income tax $220,110 $124,070 Income tax expense 91,080 52,240 Net income $129,030 $71,830 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 2041 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent $759,000 % $653,000 % Sales Cost of goods sold 341,550 % 333,030 Gross profit $417,450 % $319,970 % Selling expenses $159,390 % $130,600 % Administrative expenses 83,490 % 84,890 % Total operating expenses $242,880 % $215,490 % Income from operations $174,570 % $104,480 % Other revenue 45,540 % 19,590 % Income before income tax $220,110 % $124,070 % Income tax expense 91,080 % 52,240 % Net income $129,030 % $71,830 % 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