Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Previous Year $545,000 Sales Cost of goods sold Current Year $619,000 396,160 86,660 99,040 316,100 Selling expenses 92,650 Administrative expenses 81,750 Income tax expense 12,380 21,800 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent $619,000 $545,000 Sales Cost of goods sold 396,160 316,100 Selling expenses 86,660 92,650 Administrative expenses 99,040 81,750 Income tax expense 12,380 by 3 percentage points, and b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 2 percentage points