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 $538,000 Cost of goods sold 290,520 Selling expenses Administrative expenses $611,000 360,490 97,760 109,980 18,330 96,840 91,460 Income tax expense 21,520 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 $611,000 % $538,000 % 360,490 % 290,520 % Sales Cost of goods sold % % Selling expenses 97,760 % 96,840 % Administrative expenses 109,980 % 91,460 % % % % % Income tax expense 18,330 % 21,520 % % $ % by 2 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 5 percentage points, while selling expenses percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points