Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales $2,280,000.00 $2,000,000.00

Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales $2,280,000.00 $2,000,000.00 3 Cost of goods sold 1,960,000.00 1,750,000.00 4 Gross profit $320,000.00 $250,000.00 5 Selling expenses $156,500.00 $125,000.00 6 Administrative expenses 122,000.00 100,000.00 7 Total operating expenses $278,500.00 $225,000.00 8 Income before income tax $41,500.00 $25,000.00 9 Income tax expense 16,600.00 10,000.00 10 Net income $24,900.00 $15,000.00 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. B. conclusions can be drawn from the horizontal analysis? Winthrop Company Comparative Income Statement For the Years Ended December 31 1 Increase (Decrease) Increase (Decrease) 2 Current Year Previous Year Amount Percent 3 Sales $2,280,000.00 $2,000,000.00 4 Cost of goods sold 1,960,000.00 1,750,000.00 5 Gross profit $320,000.00 $250,000.00 6 Selling expenses $156,500.00 $125,000.00 7 Administrative expenses 122,000.00 100,000.00 8 Total operating expenses $278,500.00 $225,000.00 9 Income before income tax $41,500.00 $25,000.00 10 Income tax expense 16,600.00 10,000.00 11 Net income $24,900.00 $15,000.00