Income statement data for Winthrop Company for two recent years ended December 31 are as follows:

	Current Year			Previous Year
Sales	$2,240,000			$2,000,000
Cost of goods sold	(1,925,000)			(1,750,000)
Gross profit	$315,000			$250,000
Selling expenses	$(152,500)			$(125,000)
Administrative expenses	(118,000)			(100,000)
Total operating expenses	$(270,500)			$(225,000)
Income before income tax expense	$44,500			$25,000
Income tax expense	(17,800)			(10,000)
Net income	$26,700			$15,000

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 year Amount	Previous year Amount	Increase (Decrease) Amount	Increase (Decrease) Percent
Sales	$2,240,000	$2,000,000	$fill in the blank 16fb590c2fb4032_1	fill in the blank 16fb590c2fb4032_2%
Cost of goods sold	(1,925,000)	(1,750,000)	fill in the blank 16fb590c2fb4032_3	fill in the blank 16fb590c2fb4032_4%
Gross profit	$315,000	$250,000	$fill in the blank 16fb590c2fb4032_5	fill in the blank 16fb590c2fb4032_6%
Selling expenses	$(152,500)	$(125,000)	fill in the blank 16fb590c2fb4032_7	fill in the blank 16fb590c2fb4032_8%
Administrative expenses	(118,000)	(100,000)	fill in the blank 16fb590c2fb4032_9	fill in the blank 16fb590c2fb4032_10%
Total operating expenses	$(270,500)	$(225,000)	$fill in the blank 16fb590c2fb4032_11	fill in the blank 16fb590c2fb4032_12%
Income before income tax expense	$44,500	$25,000	$fill in the blank 16fb590c2fb4032_13	fill in the blank 16fb590c2fb4032_14%
Income tax expense	(17,800)	(10,000)	fill in the blank 16fb590c2fb4032_15	fill in the blank 16fb590c2fb4032_16%
Net income	$26,700	$15,000	$fill in the blank 16fb590c2fb4032_17	fill in the blank 16fb590c2fb4032_18%

b. The net income for Winthrop Company increased between years. This increase was the combined result of an __(increase/decrease)__ in sales and a __(higher/lovwer)__ percentage__(increase/decrease)-____ in cost of goods sold. The cost of goods sold increased at a__(slower/faster)___ rate than the increase in sales, thus causing the percentage increase in gross profit to be ___(greater/less)_____ than the percentage increase in sales.