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	$383,000		$345,000
Cost of goods sold	206,820		158,700
Selling expenses	68,940		75,900
Administrative expenses	76,600		65,550
Income tax expense	11,490		17,250

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	$383,000	%	$345,000	%
Cost of goods sold	206,820	%	158,700	%
Gross profit	$	%	$	%
Selling expenses	68,940	%	75,900	%
Administrative expenses	76,600	%	65,550	%
Gross profit	$	%	$	%
		%		%
Income tax expense	11,490	%	17,250	%
Net income	$	%	$	%