Ch. 17 HW eBook Show Me How Horizontal Analysis of Income Statement For 20Y2, 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 $450,358 $389,000 250,000 Cost of goods sold 330,000 Gross profit $120,358 $139,000 Selling expenses $33,000 546,200 27,050 Administrative expenses 21,000 Total operating expenses $73,250 $54,000 Income from operations 585,000 $47,108 1,923 Other revenue 1,600 Income before income tax $49,031 $86,600 26,000 Income tax expense 13,700 Net Income $35,331 $60,600 Required: 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 "Increase (Decrease) columns Ch. 17 HW abook Show Me How 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in th "Increase (Decrease)" columns McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 2012 2011 Difference - Amount Difference - Percent Sales $450,358 $389,000 $ % Cost of goods sold 330,000 250,000 Gross profit $120,358 $139,000 $ % Selling expenses s % $46,200 $33,000 27,050 21,000 Administrative expenses % Total operating expenses $73,250 $54,000 % Income from operations $47,108 $85,000 $ % Other revenue 1,923 1,600 % Income before income tax $49,031 $86,600 % Income tax expense 13,700 26,000 95 Net Income $35,331 $60,600 % 2. Net income has from 20Y1 to 2012. Sales have ; however, the cost of goods sold has causing the gross profit to