Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Previous Year Current Year Sales $962,500 $770,000 Cost of goods sold 799,500 650,000 Gross profit $163.000 $120,000 Selling expenses $47,150 $41,000 Administrative expenses 41,820 34,000 Total operating expenses $88.970 $75,000 Income before income tax $74,030 $45,000 Income tax expenses 29.600 18,000 $44,430 $27,000 Net income 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. Winthrop Company For the Years Ended December 31 Current Previous Increase Increase (Decrease) (Decrease) Amount year Amount year Amount Percent Sales $962,500 $770,000 Cost of goods sold 799,500 650,000 % Gross profit $163,000 $120,000 Selling expenses $47,150 $41.000 41.820 34,000 Administrative expenses $75,000 $ Total operating expenses $88,970 Income before income tax $74,030 $45.000 Income tax expense 29,600 18,000 $44,430 % $27,000 Net income b. The net income for Winthrop Company increased between vears. This increase was the combined result of an in cost of goods percentage in sales and sold. The cost rate than the increase than the percentage increase in sales. goods sold increased at a sales, thus causing the percentage increase in gross profit to be