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 201 Sales Cost of goods sold Gross profit 2012 2011 $862,720 $760,000 (614,400) (480,000) $248,320 $280,000 Selling expenses $(86,400) $(64,000) Administrative expenses (50,080) (40,000) Total operating expenses $(136,480) $(104,000) Operating income $111,840 $176,000 Other revenue 3,942 3,200 Income before income tax expense $115,782 $179,200 (32,400) (53,800) $83,382 $125,400 Income tax expense Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 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 Check My Work 2 more Check My Work uses remaining Previous Email Instructor Save and Exit Submit Assignment for Grading