Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Previous Year Current Year $570,000 $684,000 Sales 500,000 585,000 Cost of goods sold $70,000 $99,000 Gross profit $25,000 $27,500 Selling expenses 24,7804.00 21,000 Administrative expenses $52,280 Total operating expenses $24,000 $46,720 Income before income tax 9,600 18,700 Income tax expenses $14,400 $28,020 Net income a. Prepare a comparative income statement with horizontal anayssindicating the increase (decrease) for a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the round to one decimal place. aurrent year when compared with the previous year, If requaires Winthrop Company For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $684,000 $570,000 Cost of goods sold 585,000 500,000 Gross profit $99,000 $70,000 27,500 $25,000 Selling expenses Admintrstvte copens 24700 200 24,78021,000 Total operating expenses $52,280 $46,000 Income before income tax $46,720 24,000 9,600 18,700 Income tax expense $28,020 14400 Net income b. The net income for Winthrop Company increased between years. This increase was the combined result of an n cost of goods sold. The cost of goods sold increased at a rate than the than the percentage increase in sales. increase in gross profit to be Previous N