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	$541,000		$465,000
Cost of goods sold	286,730		213,900
Selling expenses	102,790		102,300
Administrative expenses	108,200		88,350
Income tax expense	16,230		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 Years Ended December 31
	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
Sales	$541,000	%	$465,000	%
Cost of goods sold	286,730	%	213,900	%
	$	%	$	%
Selling expenses	102,790	%	102,300	%
Administrative expenses	108,200	%	88,350	%
	$	%	$	%
		%		%
Income tax expense	16,230	%	23,250	%
	$	%	$	%