vertical analysis of income statement. Revenue and expense data for Innovation quarter inc

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $595,000 $541,000 275,910 333,200 Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense 107,100 108,200 113,050 91,970 17,850 27,050 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to 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 $595,000 % $541,000 % 333,200 % 275,910 Sales Cost of goods sold % % Selling expenses 107,100 96 108,200 % Administrative expenses 113,050 % 91,970 % % % 9 % Income tax expense 17,850 % 27,050 % % % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 2 percentage points, and administrative expenses by 3 percentage points. by 5 percentage points, while selling expenses by 2 percentage points. Thus, net income as a percent of sales