Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year $792,000 657,900 $134,100 $41,480 36,400 $77,880 $56,220 22,500 $33,720 Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income $600,000 510,000 $90,000 $34,000 28,000 $62,000 $28,000 11,200 $16,800 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 Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase yearyea(Decrease) (Decrease) Amount Amount Amount Percent Sales Cost of goods sold Gross profit Selling expenses Administrative expenses $792,000 $600,000 657,900 510,000 $134,100 $90,000 41,480 34,000 36,400 28,000 Total operating expenses$77,80 $62,000 Income before income tax $56,220 $28,000 11,200 $33,720 $16,800 50,10^0JO Income tax expense 22,500 Net income b. The net income for Winthrop Company increased by 100.7% between years. This increase was the combined result of an goods sold increased at a profit to be in sales of 32% and percentage ein cost of goods sold. The cost of rate than the increase in sales, thus causing the percentage increase in gross than the percentage increase in sales