For 2016, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising.

At the end of the year, Leif Grando, 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 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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Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 2015 613,600 S 617,500 566,400 $ 260,000 188,800 177,000 682,500 169,000 Total operating expenses 78,000 70,800 117,000 106,200