*Exercise 14-2 Operating data for Navarro Corporation are presented below. 2017 2016 Net sales Cost of goods sold Selling expenses Administrative expenses $ 754,000 469,500 124,500 65,000 30,000 65,000 $ 601,500 389,500 67,500 52,000 25,500 67,000 Income tax expense Net income Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round answers to 1 decimal place, e.g. 48.5%.) NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31 2017 2016 Amount Percent Amount Percent Net sales $ 754,000 $ 601,500 % % Cost of goods sold 469,500 389,500 % % Gross profit 284,500 212,000 % % Selling expenses 124,500 67,500 % % 65,000 52,000 Administrative expenses % % Total operating expenses 189,500 119,500 % % Income before income taxes 95,000 92,500 % % 30,000 25,500 Income taxes expense % % $ 65,000 Net income $ 67,000 % %