For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:Tri-Comic CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1120Y220Y12Sales$1,500,000.00$1, 250,000.003Cost of goods sold510,000.00475,000.004Gross profit$990,000.00$775,000.005Sellin g expenses$270,000.00$200,000.006Admi nistrative expenses180,000.00156,250.007Total operating expenses$450,000.00$356,250.008Inco me from operations$540,000.00$418,750.009Ot her income60,000.0050,000.0010Income before income tax$600,000.00$468,750.0011Income tax expense450,000.00375,000.0012Net income$150,000.00$93,750.001. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round your percentages to one decimal place. Enter all amounts as positive numbers.2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).Income Statement1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers. Tri-Comic CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1120Y220Y220Y120Y123Sales$1,500, 000.00$1,250,000.004Cost of goods sold510,000.00475,000.005Gross profit$990,000.00$775,000.006Sellin g expenses$270,000.00$200,000.007Admi nistrative expenses180,000.00156,250.008Total operating expenses$450,000.00$356,250.009Inco me from operations$540,000.00$418,750.0010O ther income60,000.0050,000.0011Income before income tax$600,000.00$468,750.0012Income tax expense450,000.00375,000.0013Net income$150,000.00$93,750.00Final Question2. Comment on the significant relationships revealed by the vertical analysis prepared in (1).The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2.5 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales. Please answer questions filling in the blanks.