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 2011 20Y2 2011 Sales $398,880 $342,000 220,000 294,800 Cost of merchandise sold Gross profit Selling expenses Administrative expenses $104,080 $41,330 $122,000 $29,000 18,000 23,510 $ 64,840 $39240 Total operating expenses Income from operations $47,000 $75,000 1,400 Other revenue 1,736 $40,976 $76,400 Income before income tax expense Income tax expense Net income 11,500 22,900 $29,476 $53,500 Required: 1. Prepare a comparative Income statement with horizontal analysis for the two-year period, using 2011 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 Difference Difference - Amount - Percent 20Y2 20Y1 Sales $398,880 $342,000 $ % Cost of merchandise sold 294,800 220,000 % Gross profit $104,080 $122,000 % Selling expenses % $41,330 $29,000 23,510 18,000 Administrative expenses % Total operating expenses $64,840 $47,000 % Income from operations % $39,240 $75,000 $ 1,736 1,400 % Other revenue Income before income tax expense % $40,976 $76,400 $ 11,500 22,900 Income tax expense % Net income $29,476 $53,500 % however, the 2. Net income has cost of merchandise sold has from 20Y1 to 20Y2. Sales have causing the gross profit to F