Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $363,000 Sales Cost of goods sold $427,000 247,660 192,390 Selling expenses 72,590 Administrative expenses 76,860 68,970 61,710 14,520 Income tax expense 12,810 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 $427,000 $363,000 Sales Cost of goods sold 247,660 192,390 Selling expenses 72,590 68,970 Administrative expenses 76,860 61,710 Income tax expense 12,810 by 2 percentage points, and administrative expenses b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 1 percentage points. Thus, net income as a percent of sales by 5 percentage points, while selling expenses by 3 percentage points