Income statement data for Moreno Company for two recent years ended December 31, are as follows:

Income statement data for Moreno Company for two recent years ended December 31, are as follows:

                                                                                     Current Year                      Previous Year

Sales                                                                             1120000                               1000000                       

Cost of goods sold                                                      971250                                  875000

Gross profit                                                                  148750                                 125000

Selling expenses                                                          71250                                     62500

Administrative expenses                                            56000                                     50000

Total operating expenses                                            127250                                  112500

Income before income tax                                           21500                                    12500

Income tax expense                                                      8000                                       5000

Net income Current                                                       13,500                                   75000

a. Prepare a comparative income statement with horizontal analysis, indicating the in- crease (decrease) for the current year when compared with the previous year. Round to one decimal place.

a. Prepare a comparative income statement with horizontal analysis, indicating the in- crease (decrease) for the current year when compared with the previous year. Round to one decimal place.

Solution-aMORENO COMPANYComparative Income StatementFor the Years Ended December 31, 20-Current Year Previous Year SalesCost of goods soldGross profitSelling expensesAdministrative expenses…

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