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 $528,000 $465,000 Cost of goods sold 285,120 223,200 Selling expenses 95,040 97,650 Administrative expenses 105,600 88,350 Income tax expense 15,840 23,250 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 Year Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $528,000 96 $465,000 Cost of goods sold 285,120 % 223,200 a 97,650 Selling expenses 95,040 Administrative expenses 105,600 88,350 Check My Work 2 more Check My Work uses remaining Next 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 $528,000 % $465,000 % 285,120 Cost of goods sold % 9 223,200 % 96 16 97,650 88,350 Selling expenses 95,040 Administrative expenses 105,600 26 36 9 96 0:00 23,250 15,840 Income tax expense by 6 percentage points, while selling expenses by 1 percentage points. Thus, net income as a b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points, and administrative expenses percent of sales by 2 percentage points Next Check my work Check My Work 2 more Check My Work uses remaining 5:45 PM 21