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 $384,000 $334,000 Cost of goods sold 241,920 193,720 Selling expenses 57,600 56,780 Administrative expenses 61,440 50,100 Income tax expense 7,680 13,360 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. Administrative expenses 61,440 50,100 Income tax expense 7,680 13,360 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 $384,000 $334,000 % 241,920 % 193,720 % Sales % Cost of goods sold % $ % Selling expenses 57,600 % 56,780 % Administrative expenses 61,440 % 50,100 % % $ % Accounting numeric field 17 % Income tax expense 7,680 % 13,360 % $ % % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 2 percentage points, and administrative expenses by 2 percentage points. by 5 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales Check My Work 2 more Check My Work uses remaining. Next >