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, 2012 and 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required: 20Y2 20Y1 $525,008 $446,000 380,800 280,000 $144,208 $166,000 $55,100 $38,000 31,780 24,000 $86,880 $62,000 $57,328 $104,000 2,343 1,900 $59,671 16,700 $105,900 31,800 $42,971 $74,100 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 "Increase (Decrease)" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Difference - Amount Difference - Percent Sales $525,008 $446,000 $ % Cost of goods sold 380,800 280,000 % Gross profit $144,208 $166,000 % Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue $55,100 $38,000 31,780 24,000 $86,880 $62,000 $57,328 $104,000 $ 2,343 % % 10 % % 1,900 Income before income tax $59,671 $105,900 Income tax expense Net income 16,700 31,800 10 % % % $42,971 $74,100 $ % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has causing the gross profit to