Exercise 12-3A Prepare horizontal analysis (LO12-2) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year Increase (Decrease) 2022 2021 Amount % Net sales $ 19,100,000 $ 15,800,000 Cost of goods sold 13,064,400 7,189,000 Gross profit 6,035,600 8,611,000 Operating expenses 1,680,800 1,264,000 Depreciation expense 1,069,600 1,069,600 Inventory write-down 267,400 Loss (litigation) 1,585,300 347,600 Income before tax 1,432,500 5,929,800 Income tax expense 515,700 2,085,600 Net income $ 916,800 $ 3,844,200