For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y2 as the base year. Round to one decimal place.
2. Comment on the significant relationships revealed by the horizontal analysis prepared in (1).

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GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2 Sales Cost of goods sold Gross profi Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income 785,000 500,000) 285,000 $ (40,000) (25,000) $ (65,000) 220,000 2,000 222,000 (20,000) $ 202000 862,000 212,000 $ (44,000) (27,000) $ 71,000) 141,000 2,300 143,300 (13,000) 130,300