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 $386,000 $336,000 Cost of goods sold 208,440 157,920 Selling expenses 69,480 70,560 Administrative expenses Income tax expense 77,200 11,580 63,840 16,800 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 Sales Current year Amount Current year Percent $386,000 Previous year Amount Previous year Percent % $336,000 % Cost of goods sold 208,440 % 157,920 % % % Selling expenses 69,480 % 70,560 % Administrative expenses 77,200 % 63,840 % % % % % Income tax expense 11,580 % 16,800 % % % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 1 percentage points. Thus, net income as a percent of sales by 7 percentage points, while selling expenses by 3 percentage points. by 3 percentage points, and administrative expenses