For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, 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 percentages 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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Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $1,500,000 1,250,000 475,000 510,000 180,000 156,250 60,000 50,000 450,000 375,000