Vertical Analysis of Income Statement
Revenue and expense data for Innovation Quarter Inc. for tworecent years are as follows:
| CurrentYear | PreviousYear |
| Sales | $432,000 | | $372,000 | |
| Cost of goods sold | 267,840 | | 212,040 | |
| Selling expenses | 64,800 | | 63,240 | |
| Administrative expenses | 73,440 | | 59,520 | |
| Income tax expense | 8,640 | | 14,880 | |
a. Prepare an income statement in comparativeform, stating each item for both years as a percent of sales. Ifrequired, round percentages to one decimal place. Enter all amountsas 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 | $432,000 | % | $372,000 | % |
| Cost of goods sold | 267,840 | % | 212,040 | % |
| Gross profit | $ | % | $ | % |
| Selling expenses | 64,800 | % | 63,240 | % |
| Administrative expenses | 73,440 | % | 59,520 | % |
| Total operating expenses | $ | % | $ | % |
| Income from operations | | % | | % |
| Income tax expense | 8,640 | % | 14,880 | % |
| Net income | $ | % | $ | % |
