For 2015, Ottawa Technology Company initiated a sales promotion campaign that included the expenditure of an additional $20,000 for advertising. At the end of the year, George Wallace, the president, is presented with the following condensed income statement:

Instructions
1. Prepare an 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. Was the advertising campaign successful? Did the additional cost result in a proportionate increase in net income?

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Ottawa Technology Company Income Statement For the Years Ended December 31, 2015 and 2014 2015 2014 Sales.... Sales returns and allowances. $714,000 $612,000 12.000 600,000 14,000 700.000 Net sales.... Cost of goods sold.. Gross profit.... Selling expenses.... Administrative expenses Total operating expenses. Income from operations.. Other income.. Income before income taxes Income taxes expense... .3B 322,000 378.000 154,000 70,000 224,000 154,000 312,000 288,000 120.000 66,000 186,000 102.000 24,000 28,000 182.000 70.000 $112.000 126.000 60.000 $ 66.000 Net income.