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Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current...

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000 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.

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Innovation Quarter Inc.
Comparative Income statement
Particulars Current Year Previous year
Sales $4,000,000.00 100.0% $3,600,000.00 100.0%
Cost of goods sold $2,280,000.00 57.0% $1,872,000.00 52.0%
Gross Profit $1,720,000.00 43.0% $1,728,000.00 48.0%
Selling expenses $600,000.00 15.0% $648,000.00 18.0%
Administrative expenses $520,000.00 13.0% $360,000.00 10.0%
Income before taxes $600,000.00 15.0% $720,000.00 20.0%
Income tax expense $240,000.00 6.0% $216,000.00 6.0%
Net Income $360,000.00 9.0% $504,000.00 14.0%
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