Wilson Corporation Income Statement Year 2 Sales $ 90,000 Cost of goods sold 27.000 Gross margin 63,000 Selling and administrative expenses 29.000 Net income before taxes 34,000 Income taxes (305) 10,200 Net income $ 23,800 Year 1 $ 75,000 23,000 52,000 26.000 26.000 7,800 $ 18,200 From the horizontal analysis prepared using the income statements of Wilson Corporation, the cost of goods sold in Year 2 O is 30.7% of total sales O increased by 17.4% O is 69.3% of total sales Increased by 21.5%