Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

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 Cost of goods sold Selling expenses Administrative expenses Income tax expense $499,000 284,430 84,830 94,810 14,970 $429,000 223,080 81,510 72,930 21,450 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 Percent Current year Amount Previous year Amount Previous year Percent $429,000 223,080 Sales $499,000 Cost of goods sold 284,430 9% Selling expenses 84,830 81,510 Administrative expenses 94,810 72,930 Income tax expense 14,970 21,450 b. The vertical analysis indicates that the cost of goods sold as a percent of sales expenses income as a percent of sales by 5 percentage points, while selling by 2 percentage points. Thus, net by 2 percentage points, and administrative expenses by 3 percentage points