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	$436,000		$388,000
Cost of merchandise sold	231,080		178,480
Selling expenses	82,840		85,360
Administrative expenses	87,200		73,720
Income tax expense	13,080		19,400

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	$436,000	fill in the blank 494b66f6cfd8058_1%	$388,000	fill in the blank 494b66f6cfd8058_2%
Cost of merchandise sold	231,080	fill in the blank 494b66f6cfd8058_3%	178,480	fill in the blank 494b66f6cfd8058_4%
	$fill in the blank 494b66f6cfd8058_6	fill in the blank 494b66f6cfd8058_7%	$fill in the blank 494b66f6cfd8058_8	fill in the blank 494b66f6cfd8058_9%
Selling expenses	82,840	fill in the blank 494b66f6cfd8058_10%	85,360	fill in the blank 494b66f6cfd8058_11%
Administrative expenses	87,200	fill in the blank 494b66f6cfd8058_12%	73,720	fill in the blank 494b66f6cfd8058_13%
	$fill in the blank 494b66f6cfd8058_15	fill in the blank 494b66f6cfd8058_16%	$fill in the blank 494b66f6cfd8058_17	fill in the blank 494b66f6cfd8058_18%
	fill in the blank 494b66f6cfd8058_20	fill in the blank 494b66f6cfd8058_21%	fill in the blank 494b66f6cfd8058_22	fill in the blank 494b66f6cfd8058_23%
Income tax expense	13,080	fill in the blank 494b66f6cfd8058_24%	19,400	fill in the blank 494b66f6cfd8058_25%
	$fill in the blank 494b66f6cfd8058_27	fill in the blank 494b66f6cfd8058_28%	$fill in the blank 494b66f6cfd8058_29	fill in the blank 494b66f6cfd8058_30%