ssignment/takeAssignment Main.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 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. Boone Company Comparative Income Statement For the Years Ended December 31 Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent $420,000 % Current year Amount Sales $546,000 460,800 Cost of goods sold 360,000 Gross profit $85,200 $60,000 Selling expenses 25,200 23,040 21,000 18,000 Administrative expenses % Total operating expenses $48,240 $39,000 Income before income tax $36,960 $21,000 8,400 Income tax expense 14,800 Net income $22,160 $12,600 b. The net income for Boone Company increased by 75,9% between years. This increase was the combined result of an in sales of 30% and percentage In cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales Previous Next Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $546,000 $420,000 Cost of goods sold 460,800 360,000 Gross profit $85,200 $60,000 Selling expenses $25,200 $21,000 Administrative expenses 23,040 18,000 Total operating expenses $18,240 $39,000 Income before income tax $36,960 Income tax expenses 14,800 8,400 Net income $22,160 $12,600 $21,000 d. 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. Boone Company Comparative Income Statement For the Years Ended December 31 Current year Amount Previous year Amount increase (Decrease) Amount Increase (Decrease) Percent Sales 5546,000 $420,000