For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:

Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$764,832		$674,000
Cost of goods sold	(550,400)		(430,000)
Gross profit	$214,432		$244,000
Selling expenses	$(76,950)		$(57,000)
Administrative expenses	(45,070)		(36,000)
Total operating expenses	$(122,020)		$(93,000)
Operating income	$92,412		$151,000
Other revenue	3,466		2,800
Income before income tax expense	$95,878		$153,800
Income tax expense	(26,800)		(46,100)
Net income	$69,078		$107,700

Required:

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1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place.

Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1

	20Y2	20Y1	Increase/ (Decrease) Amount	Increase/ (Decrease) Percent
Sales	$764,832	$674,000	$fill in the blank 096e7607dfd6037_1	fill in the blank 096e7607dfd6037_2%
Cost of goods sold	(550,400)	(430,000)	fill in the blank 096e7607dfd6037_3	fill in the blank 096e7607dfd6037_4%
Gross profit	$214,432	$244,000	$fill in the blank 096e7607dfd6037_5	fill in the blank 096e7607dfd6037_6%
Selling expenses	$(76,950)	$(57,000)	$fill in the blank 096e7607dfd6037_7	fill in the blank 096e7607dfd6037_8%
Administrative expenses	(45,070)	(36,000)	fill in the blank 096e7607dfd6037_9	fill in the blank 096e7607dfd6037_10%
Total operating expenses	$(122,020)	$(93,000)	$fill in the blank 096e7607dfd6037_11	fill in the blank 096e7607dfd6037_12%
Operating income	$92,412	$151,000	$fill in the blank 096e7607dfd6037_13	fill in the blank 096e7607dfd6037_14%
Other revenue	3,466	2,800	fill in the blank 096e7607dfd6037_15	fill in the blank 096e7607dfd6037_16%
Income before income tax expense	$95,878	$153,800	$fill in the blank 096e7607dfd6037_17	fill in the blank 096e7607dfd6037_18%
Income tax expense	(26,800)	(46,100)	fill in the blank 096e7607dfd6037_19	fill in the blank 096e7607dfd6037_20%
Net income	$69,078	$107,700	$fill in the blank 096e7607dfd6037_21	fill in the blank 096e7607dfd6037_22%

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2. Net income has

increaseddecreased

from 20Y1 to 20Y2. Sales have

increaseddecreased

; however, the cost of goods sold has

increaseddecreased

at a faster rate than sales, causing the gross profit to

increasedecrease

.