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 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. $573,000 360,990 85,950 91,680 11,460 $516,000 288,960 92,880 77,400 20,640 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 $573,000 $516,000 Cost of goods sold 360,990 288,960 Selling expenses 85,950 92,880 Administrative expenses 91,680 77,400 P/o Income tax expense 11,460 20,640 b. The vertical analysis indicates that the cost of goods sold as a percent of sales expenses income as a percent of sales by 7 percentage points, while selling by 1 percentage points. Thus, net by 3 percentage points, and administrative expenses by 3 percentage points