Revenue and expense data for Wilson Company are as follows:
2006 2005
Administrative expenses $ 24,750 $ 18,000
Cost of goods sold 487,500 375,000
Income Tax 15,000 12,000
Net sales 750,000 600,000
Selling expenses 182,500 154,800
(a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2006 and 2005 as a percent of sales.
(b) Comment upon the significant changes disclosed by the comparative income statement.