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 $343,000 $385,000 227,150 61,600 Cost of goods sold Selling expenses Administrative expenses 181,790 65,170 69,300 58,310 13,720 Income tax expense 11,550 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 $385,000 96 $343,000 % Sales Cost of goods sold 227,150 96 181,790 % % % 61,600 % 65,170 % Selling expenses Administrative expenses 69,300 % 58,310 % % % % % Income tax expense 11,550 % 13,720 % 96 % b. The vertical analysis indicates that the cost of goods sold as a percent of sales selling expenses by 3 percentage points, and administrative expenses points. Thus, net income as a percent of sales by 3 percentage points. by 6 percentage points, while by 1 percentage