For 2012, Eurie Company reported its most significant decline in net income in years. At the end of the year, H. Finn, the president, is presented with the following condensed comparative income statement:

Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. If required, round to one decimal place.

2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).