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: 2011 $484,000 Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2042 Sales $559,464 Cost of goods sold (409,200) Gross pront $150,264 Selling expenses $(57,400) Administrative expenses (33.490) Total operating expenses ${90,890) Operating income $59,374 Other revenue 2,472 Income before income tax expense $61,846 Income tax expense (17,300) Net income $44,546 (310,000) $174,000 $(41,000) (26,000) ${67,000) $107.000 2,000 $109,000 (32,700) $76,300 Required: eBook Show Me How Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 201 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, 2012 and 2041 Increase/ Increase/ (Decrease) (Decrease) 2012 2011 Amount Percent Sales $559,464 $484,000 Cost of goods sold (409,200) (310,000) Gross profit $150,264 $174,000 Selling expenses $57,400) $(41,000) Administrative expenses (33,490) (26,000) Total operating expenses $(90,890) $(67,000) Operating income $59,374 $107.000 Other revenue 2.472 2,000 Income before income tax expense 561,846 $109,000 Income tax expense (17,300) (32,700) Net Income $44,546 $76,300 : however, the cost of goods sold has at a faster 2. Net income has from 2011 to 2012. Sales have rate than sales, causing the gross profit to