1. Prepare a comparative income statement "Increase (Decrease) columns McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 20Y1 Difference - Amount Difference - Percent Sales 5450,358 $389,000 $ 9% Cost of goods sold 330,000 250,000 % Gross profit $120,358 $139,000 $ % % $ Selling expenses $46,200 $33,000 % 27,050 21,000 Administrative expenses 0% $54,000 Total operating expenses $73,250 % Income from operations $47,108 $85,000 1,923 1,600 % Other revenue $ % Income before income tax $49,031 $86,600 26,000 % 13,700 Income tax expense % Net Income $35,331 $60,600 $ from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has 2. Net Income has , causing the gross profit to Income % $129,030 $71,830 % Net income 2. 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 cost was While selling expenses as a percent of sales The sales promotion campaign appears to have been slightly, the more than made up for by sales. Check My Work