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2012 For 2012, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the

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2012 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 2011 2011 Sales $426,621 $361,000 Cost of merchandise sold 317,400 230,000 Gross pront 5111,221 $131,000 Selling expenses 544,250 $30,000 Administrative expenses 25,500 19,000 Total operating expenses $69.750 549,000 Income from operations 541,471 582,000 Other revenue 1,362 1.500 Income before income tax expense $43.333 383,500 Income tax expense 12.100 25,100 Net Income $33.33 $50,400 Required: 1. Prepare a comparative Income statement with hortzontal analysis for the two-year period, using 2011 as the base Year Round percentages to one decimal place. Use the minus sign to indicate a decrease in the difference columns 1. Prepare a comparative Income statement with horizontal analysis for the two-year period, using 2071 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in the "Difference columns McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 Difference Difference - Amount - Percent 2012 2011 Sales $426,625 $365,000 Cost of merchandise solo 317,400 230,000 Gross profit 5111,221 5131,000 Selling expenses $44,250 $30,000 Administrative expenses 25.500 19.000 Total operating expenses 569,750 349,000 Income from operations $41.471 582,000 Other revenue 1,500 Income before income tax expense 43,333 503,500 Income tax expense 12.100 25.100 Net Income 31,233 550,400 - From 2011 to 2012 Set have how the cost of the old as 2. Net income Cucing the gross profitto

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