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	$559,000		$509,000
Cost of goods sold	324,220		269,770
Selling expenses	95,030		96,710
Administrative expenses	100,620		86,530
Income tax expense	16,770		20,360

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	$559,000	%	$509,000	%
Cost of goods sold	324,220	%	269,770	%
Gross profit	$	%	$	%
Selling expenses	95,030	%	96,710	%
Administrative expenses	100,620	%	86,530	%
Total operating expenses	$	%	$	%
Income from operations		%		%
Income tax expense	16,770	%	20,360	%
Net income	$	%	$	%