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 $394,000 $355,000 Cost of merchandise sold 232,460 188,150. Selling expenses 63,040 67,450 Administrative expenses 70,920 Income tax expense 11,820 60,350 14,200 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages Enter all amounts as positive numbers. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Sales $394,000 % Cost of merchandise sold 232,460 % % Selling expenses 63,040 Administrative expenses 70,920 Previous year Amount Previous year Percent $355,000 % 188,150 % % 67,450 % 60,350 % % % 11,820 14,200 % Income tax expense % Cost of merchandise sold 232,460 188,150 Selling expenses 63,040 67,450 Administrative expenses Income tax expense 70,920 11,820 60,350 14,200 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 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 $394,000 232,460 % Selling expenses 63,040 Administrative expenses 70,920 Income tax expense 11,820 b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 3 percentage points, and administrative expenses i by 3 percentage points. $355,000 % 188,150 96 67,450 60,350 14,200 by 6 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales