Drop down options: increased, decreased

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, 20Y2 and 20Y1 2012 20Y1 $792,584 572,000 $693,000 440,000 $220,584 $253,000 $79,750 $58,000 46,990 37,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income $126,740 $95,000 $93,844 3,677 $97,521 $158,000 2,900 $160,900 48,300 $112,600 27,300 $70,221 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 the "Increase (Decrease)" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Difference - Amount Difference - Percent $792,584 $693,000 $ % 572,000 440,000 % Sales Cost of goods sold Gross profit $220,584 $253,000 % Selling expenses $79,750 $58,000 % Administrative expenses 46,990 37,000 % Total operating expenses $126,740 $95,000 $ % Income from operations $93,844 $158,000 $ % Other revenue 3,677 2,900 % Income before income tax $97,521 $160,900 % Income tax expense 27,300 48,300 % Net income $70,221 $112,600 % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has causing the gross profit to

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer