#becausesneaker... HW CH 17 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expenses Net income Sales Gross profit Cost of merchandise sold Selling expenses Custom Order 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. Net income Administrative expenses Total operating expenses Income before income tax expense Income tax expense profit to be Check My Work Assignment Score: 0.0 % Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Year $33,000 29,500 $732,000 613,600 $118,400 $33,000 29,500 $62,500 $55,900 22,400 $33,500 $62,500 $55,900 22,400 $33,500 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $732,000 $610,000 613,600 520,000 $118,400 $90,000 $ $30,000 25,000 Previous Year $610,000 520,000 $90,000 $30,000 25,000 $55,000 $35,000 14,000 $21,000 $55,000 $ $35,000 14,000 $21,000 **** ***** % % % % % % % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and percentage in cost of merchandise sold. The cost of merchandise sold increased at a rate than the increase in sales, thus causing the percentage increase in gross than the percentage increase in sales. % % Previous Next Email Instructor Save and Exit Submit Assignment for Grading ?