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 $587,000 $528,000 Cost of merchandise sold 346,330 285,120 Selling expenses 93,920 95,040 Administrative expenses 105,660 89,760 Income tax expense 17,610 21,120 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 $587,000 % $528,000 % Cost of merchandise sold 346,330 % 285,120 % % % Selling expenses 93,920 % 95,040 % Administrative expenses 105,660 % 89,760 % % % 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 $587,000 % $528,000 % Cost of merchandise sold 346,330 % 285,120 % % % Selling expenses 93,920 % 95,040 % Administrative expenses 105,660 % 89,760 % % % % % 17,610 % Income tax expense 21,120 % % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales selling expenses by 2 percentage points, and administrative expenses net income as a percent of sales by 3 percentage points. by 5 percentage points, while by 1 percentage points. Thus