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 $590,000 $525,000 Cost of merchandise sold 348,100 283,500 Selling expenses 94,400 94,500 Administrative expenses 89,250 21,000 Income tax expense 106,200 17,700 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 $590,000 100 % $525,000 100 % Cost of merchandise sold 348,100 59% 283,500 54 % Gross profit 24,190 X 41 % 24,150 X 46 % Selling expenses 94,400 16% 94,500 18% Administrative expenses 106,200 18 % 89,250 17 % Total operating expenses 20,060 X 0X % 18,375 X Income from operations 41,300 7% 57,750 0X % 11% Income tax expense 17,700 3 % 21,000 4 % Net income 23,600 4% 36,750 7%