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 $603,000 $543,000 Cost of merchandise sold 325,620 266,070 Selling expenses 108,540 108,600 Administrative expenses 120,600 Income tax expense 18,090 103,170 27,150 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. Sales Cost of merchandise sold Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent $603,000 % 325,620 % % Selling expenses 108,540 % Administrative expenses 120,600 % Income tax expense 10 % 18,090 % 96 Previous year Amount Previous year Percent 0 00 0 $543,000 266,070 % 108,600 % 103,170 % % 27,150 % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales ( by 2 percentage points, and administrative expenses D by 2 percentage points. by 5 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales