Income statement data for Boone Company for two recent years ended December 31, are as follows: Current Year Previous Year $787,500 $630,000 Sales Cost of goods sold 671,000 550,000 Gross profit $116,500 $80,000 Selling expenses $29,000 $33,350 29,520 Administrative expenses 24,000 Total operating expenses $53,000 Income before income tax $62,870 $53,630 21,500 $32,130 $27,000 10,800 Income tax expenses Net income $16,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Boone Company Comparative Income Statement For the Years Ended December 31 Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent $630,000 Current year Amount $787,500 Sales Cost of goods sold 671,000 550,000 Gross profit $116,500 $80,000 Selling expenses 33,350 29,000 Administrative expenses 29,520 24,000 Total operating expenses $62,870 $53,000 Income before income tax $53,630 $27,000 Income tax expense 21,500 10,800 Net income $32,130 $16,200 in cost of goods sold. The cost b. The net income for Boone Company increased by 98.3% between years. This increase was the combined result of an of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be in sales of 25% and percentage than the percentage increase in sales