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 $508,000 314,960 $442,000 243,100 Cost of goods sold 76,200 Selling expenses Administrative expenses 79,560 70,720 86,360 Income tax expense 10,160 17,680 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 $508,000 $442,000 Sales Cost of goods sold 314,960 243, 100 Selling expenses 76,200 79,560 Administrative expenses 86,360 70,720 Income tax expense 10,160 17.680 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 3 percentage points, and administrative expenses by 3 percentage points. by 7 percentage points, while selling expenses by 1 percentage points. Thus, net income as a percent of sales