Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year Amount Amount (Decrease) (Decrease) Amount Percent Sales $564,000 $470,000 94,000 20 % Cost of merchandise sold 460,200 390,000 70,200 18 % Gross profit $103,800 $80,000 23,800 29.75 X % Selling expenses $28,600 $26,000 $ 2,600 10 Administrative expenses 25,960 22,000 3,960 18 > > 0 % % Total operating expenses $54,560 $48,000 6,560 13.66 X% Income before income tax expense $49,240 $32,000 17,240 53.87 X % Income tax expense 19,700 12,800 6,900 53.90 % Net income $29,540 $19,200 10,340 53.85 X %