PR 14-2A Vertical analysis of income statement Obj. 2 For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative EXCEL TEMPLATE income statement: GENERAL LEDGER Tri-Comic Company Comparative Income Statement + For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales . . . . . .................. $1,500,000 $1,250,000 Cost of goods sold. . . . . . . . . .. 510,000 475,000 Gross profit . .. . . .. . . $ 990,000 $ 775,000 Selling expenses .. $ 270,000 200,000 Administrative expenses . . 180,000 156,250 Total operating expenses $ 450,000 $ 356,250 Income from operations . .. $ 540,000 418,750 Other income . . . 60,000 50,000 Income before income tax . $ 600,000 468,750 Income tax expense . 450,000 375,000 Net income . .. . . . . . . . . . . 150,000 $ 93,750 Instructions 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. (Round percentages to one decimal place.) Answer + 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1)