2. The comparative income statement for Gledhill Products for 20-4 and 20-5 is shown on the next page. (a) Calculate the dollar amount and percentage change for each item on the statement. Indicate an increase by placing a plus (+) sign before the amount and a decrease by placing a minus sign before the amount. (b) Identify any significant developing trends. (c) Comment on the possible reasons for the decrease in net income and on action that management should consider taking. Gledhill Products Comparative Income Statement For the years ended December 31, 20-5, 20-4 Increase (+) 20-5 20-4 Decrease (-) Revenue Sales $289 450 $302 480 ? Sales Returns and Allowances 12 775 13 040 ? Net Sales 276 675 289 440 ? % Increase Decrease (-) ? ? ? ? Cost of Goods Sold Inventory, January 1 Net Purchases Cost of Goods for Sale Less: Inventory, December 31 Cost of Goods Sold Gross Profit 25 375 120 730 146 105 28 065 118 040 158 635 20 060 113 380 133 440 25 375 108 065 181 375 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Operating Expenses Salaries Depreciation-Building Depreciation Equipment Depreciation-Automobile Bad Debts Insurance Supplies Telephone and Internet Utilities Automobile Delivery Miscellaneous Total Expenses Net Income 32 035 1 525 1 450 4 600 1975 325 3 000 2 360 4 200 7 770 4 150 2 600 65 990 $ 92 645 31 471 1 660 1 580 5 770 460 320 2 500 2 250 3 500 7 630 3 890 2 450 63 481 $ 117 894 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? F