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 $616,000 $561,000 Cost of goods sold 308,550 369,600 Selling expenses 98,560 100,980 Administrative expenses 104,720 89,760 Income tax expense 18,480 22,440 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 $616,000 $561,000 369,600 Cost of goods sold 308,550 98,560 Selling expenses 100,980 104,720 89,760 Administrative expenses % % 18,480 22,440 Income tax expense % b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 5 percentage points, while selling expenses by 2 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points