For 2014, Kasay Company initiated a sales promotion campaign that included the expenditure of an additional $30,000 for advertising. At the end of the year, Scott Brown, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in(1).

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Kasay company Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales. $820,000 20,000 900,000$800,000 340,000 $540,000$460,000 $176,000 72,000 $248,000 $212,000 92,000 378,000 304,000 240,000 S 64,000 922,500 22,500 360,000 216,000 81,000 $297,000 $243,000 135,000 Administrative expenses.... Income from operations ther income Income before income tax ncome tax expense. Net income.... 270,000 108,000