The vertical analysis of the income statement of bates, inc. is as shown below: bates, inc. comparative income statement years ended december 31, 2019 and 2018 bates, inc. comparative income statement years ended december 31, 2019 and 2018 (in millions) 2019 percent of total 2018 percent of total net sales $6,355 100.0% $4,920 100.0% cost of goods sold 3,370 53.0 2,200 44.7 gross profit 2,985 47.0 2,720 55.3 operating expenses: selling expenses 675 10.6 580 11.8 administrative expenses 410 6.5 425 8.6 total operating expenses 1,085 17.1 1,005 20.4 operating income 1,900 29.9 1,715 34.9 other income and (expenses): interest expense (400) (6.3) (695) (14.1) total other income and (expenses) (400) (6.3) (695) (14.1) income before income taxes 1,500 23.6 1,020 20.7 income tax expense 230 3.6 210 4.3 net income $1,270 20.0% $810 16.5% the figure 47.0% shown for gross profit in 2019 signifies that the gross profit is