Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $1,700,000 100 % Cost of merchandise sold 1,139,000 73 Gross profit $561,000 27 % Selling expenses $323,000 15 % Administrative expenses 136,000 6 Total operating expenses $459,000 21 % Income from operations $102,000 6 % Other revenue and expense: Other revenue 34,000 2 Other expense (17,000) 1 Income before income tax expense $119,000 7 % Income tax expense 51,000 4 Net income $68,000 3 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $381,000 $343,000 Cost of merchandise sold 224,790 185,220 60,960 61,740 Selling expenses Administrative expenses Income tax expense 68,580 11,430 58,310 13,720 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. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $381,000 % $343,000 % Cost of merchandise sold 224,790 185,220 % % % % Selling expenses 60,960 % 61,740 % Administrative expenses 68,580 % 58,310 % % % % % Income tax expense 11,430 % 13,720 % % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 5 percentage points, while selling expenses by 2 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points