1 2. Ch 14 Exercises Horizontal Analysis of Income Statement For 2012, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense 20Y2 20Y1 $506,382 (372,600) $427,000 (270,000) $133,782 $157,000 $(53,100) $(36,000) (30,870) (23,000) $(83,970) $(59,000) $49,812 $98,000 2,279 1,800 $52,091 $99,800 (14,600) $37,491 (29,900) $69,900 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Amount Increase/ Increase/ (Decrease) (Decrease) Percent Check My Work 0 more Check My Work uses remaining. Progress: 2/2 items Previous