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 $534,000 Cost of goods sold 315,060 $470,000 249,100 89,300 79,900 Selling expenses Administrative expenses 85,440 96,120 16,020 Income tax expense 18,800 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 $534,000 $470,000 % Cost of goods sold 315,060 249,100 % % W 89,300 Selling expenses 85,440 Administrative expenses 96,120 79,900 Check My Work 2 more Check My Works remaining Next > eBook Show Me How Calculator Print Item op Income tax expense 16,020 18,800 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. Ent 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 $534,000 % $470,000 % 315,060 249,100 % Sales Cost of goods sold % % % Selling expenses 85,440 Administrative expenses 96,120 89,300 79,900 % 96 % % 00 % % 16,020 Income tax expense % 18,800 % % 96 Y b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points, and administrative expenses by 3 percentage points by 6 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales Next Check My Work 2 more Check My Work usos remaining