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

	Current Year			Previous Year
Sales	$477,300			$370,000
Cost of goods sold	406,400			320,000
Gross profit	$70,900			$50,000
Selling expenses	$21,420			$18,000
Administrative expenses	19,050			15,000
Total operating expenses	$40,470			$33,000
Income before income tax	$30,430			$17,000
Income tax expenses	12,200			6,800
Net income	$18,230			$10,200

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.

b. The net income for Winthrop Company increased between years. This increase was the combined result of an (increase, decrease) in sales and (higher, lower) 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.

Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $477,300 $370,000 % 406,400 320,000 % Sales Cost of goods sold Gross profit $70,900 $50,000 $21,420 $18,000 % Selling expenses Administrative expenses 19,050 15,000 % $40,470 $33,000 % Total operating expenses Income before income tax $17,000 % $30,430 12,200 Income tax expense 6,800 % Net income $18,230 $10,200 $ %