eBook Show Me How Caiculator 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, 20Y2 and 20Y1. 20Y2 201 Sales $435,400 $370,000 Cost of goods sold 312.800 230,000 Gross profit $122,600 $140,000 Selling expenses $44,950 $31,000 Administrative expenses: 26,480 20,000 Total operating expenses $71,430 $51,000 Income from operations $51,170 $89,000 Other revenue 1,984 1,600 Income before income tax $53.154 $90,600 Income tax expense 14,900 27,200 Net income $38.254 $63,400 Required: 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 20Y1 20Y2 Difference Amount Difference-Percent 20Y1 Sales $435,400 $370,000 312,800 230,000 Cost of goods sold $122,600 $140,000 Gross profit Selling expenses $44,950 $31,000 26,480 20,000 Administrative expenses Total operating expenses $71,430 $51,000 Income from operations $51,170 $89,000 1,984 1,600 Other revenue Income before income tax $53,154 $90,600 14,900 27,200 Income tax expense $38,254 $63,400 Net income 2. Net income has ;however, the cost of goods sold has causing the from 20Y1 to 20Y2. Sales have gross profit to