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 "Difference" columns. If required, round to one decimal place.

2. Net income has ______ (increased/decreased)

from 20Y1 to 20Y2. Sales have ______(increased/decreased)

; however, the cost of goods sold has ______ (increase/decrease)

, causing the gross profit to _______ (increase/decrease)

Morontal Analysis of Income Statement For 2012, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales 5536,640 $456.000 Cost of goods sold 394.400 290,000 Gross profit $142.240 $166,000 Selling expenses $55,100 $38,000 Administrative expenses 31,780 24,000 Total operating expenses $86,880 $62,000 Income from operations $55,360 $100,000 Other income 2,356 1,900 Income before income tax $57,716 $105.900 Income tax expense 16,200 31,800 Net income $41,516 574,100 Required: medang Income tax expense 16,200 31,800 Net income $41.516 $74,100 Required: 1. Prepare a comparative Income statement with horontal analysis for the two-year period, using 201 as the base year. Use the minus sign to indicate a decrease in the difference columns. If required, roun one decimal place McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Difference - Amount Difference - Percent Sales $536,640 $456,000 Cost of goods sold 394,400 290,000 Gross profit $142,240 $166,000 Selling expenses $55,100 $38,000 $ Administrative expenses 31,780 24,000 Total operating expenses $86,880 $62,000 Income from operations $55,360 $104,000 Other income 2,356 1.900 Income before income tax $57,716 $105.900 Income tax expense 16,200 31,800 Net Income $41,516 $74,100 2. Net income from 2011 to 2012. Sales have however, the cost of goods sold as Cusing the gross profitto