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 $452,000 $398,000 Cost of merchandise sold 280,240 218,900 Selling expenses 67,800 71,640 Administrative expenses Income tax expense 63,680 15,920 76,840 9,040 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 Cost of merchandise sold $452,000 % $398,000 % 280,240 % 218,900 % Gross profit Selling expenses % % 67,800 % 71,640 % Administrative expenses 76,840 % 63,680 % Total operating expenses % % Income from operations % % Income tax expense 9,040 % 15,920 % Net income % % Feedback Check My Work