For 2012, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 2011 Sales Cost of goods sold $16,800,000 11,500,000 Gross profit $5,300,000 $15,000,000 10,000,000 $5,000,000 $1,500,000 1,000,000 Selling expenses $1,770,000 1,220,000 $2,990,000 $2,500,000 Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax $2,310,000 256,950 $2,566,950 1,413,000 $2,500,000 225,000 $2,725,000 1,500,000 $1,225,000 Income tax expense Net Income $1,153,950 Required: Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in the "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2022 and 2041 2012 2011 Difference - Amount Difference - Percent Sales $16,800,000 $15,000,000 $ Cost of goods sold 11,500,000 10,000,000 Gross profit $5,300,000 $5,000,000 Selling expenses $1,770,000 $1,500,000 Administrative expenses 1,220,000 1,000,000 Total operating expenses $2,990,000 $2,500,000 Income from operations $ $2,310,000 256,950 $2.120,000 225,000 Other revenue Income before income tax $2,566,950 $2,725,000 Income tax expense 1,413,000 $1,153,950 1,500,000 $1,225,000 Net income 2. Net income has ; however, the cost of goods sold has from 20Y1 to 2012. Sales have causing the gross profit to Check My Work Next >