Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $446,000 Sales $397,000 Cost of goods sold 276,520 222,320 66,900 Selling expenses 71,460 Administrative expenses 75,820 59,550 Income tax expense 15,880 8,920 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 100% Sales $446,000 $397,000 276,520 222,320 Cost of goods sold Selling expenses 66,900 71,460 % % 75,820 59,550 Administrative expenses Chock My Work moro Chock M, Work ucoe romeinina 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 100 % $446,000 $397,000 Sales % 276,520 222,320 Cost of goods sold % % Selling expenses 66,900 71,460 % % Administrative expenses 75,820 59,550 % % % % % 8,920 15,880 Income tax expense by 6 percentage points, while selling expenses b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points, and administrative expenses by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points. Next Chock My Wor 2 moro Choelk My l orlk ueoe rooainine