Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows : Current Year Previous Year $545,000 354, 250 Sales Cost of goods sold Selling expenses Administrative expenses $496,000 297,600 79,360 76,300 81,750 69,440 Income tax expense 10,900 19,840

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $545,000 $496,000 Cost of goods sold 354,250 297,600 Selling expenses 76,300 79,360 Administrative expenses 81,750 69,440 Income tax expense 10,900 19,840 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 Sales $545,000 $196,000 Cost of goods sold 354,250 297,600 79,360 Selling expenses Administrative expenses 76,300 81,750 69.440 Income tax expense 10,900 19,840 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 Sales $545,000 $496,000 Cost of goods sold 354,250 297,600 76,300 Selling expenses Administrative expenses 79,360 69,440 81,750 Income tax expense 10.900 b. The vertical analysis indicates that the cost of goods sold as a percent of sales selling expenses by 2 percentage points, and administrative expenses points. Thus, net income as a percent of sales by 2 percentage points. by 5 percentage points, while b y 1 percentage