eBook * Show Me How Horizontal Analysis of Income Statement For 2012, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales $665,000 Cost of goods sold (420,000) $245,000 $760,340 (546,000) $214,340 $(77,000) (44,450) $(121,450) $92,890 3,573 $96,463 (27,000) $69,463 Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net Income $(56,000) (35,000) $(91,000) $154,000 2,800 $156,800 (47,000) $109,800 Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 Increase/ Increase/ (Decrease) (Decrease) 2012 2011 Amount Percent Sales $760,340 $665,000 $ 95,340 143 % Cost of goods sold (546,000) (420,000) -126,000 X X% $214,340 $245,000 Gross profit X X Selling expenses $177,000) $(56,000) (44,450) (35,000) X X% Administrative expenses X X X x X% Total operating expenses $(121,450) S(91,000) Operating income $92,890 $154,000 Other revenue 3,573 2,800 Income before income tax expense $96,463 $156,800 Income tax expense (27,000) (47,000) Net income $69,463 $109,800 X X X X X Owok My Work 4 more Chuck My Work uses remaining