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:

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.

Net income has increased/decreased from 20Y1 to 20Y2. Sales have increased/decreased; however, the cost of goods sold has increased/decreased at a faster rate than sales, causing the gross profit to increase/decrease

Sales$624,805 $541,000 Cost of goods sold(448,800) (340,000)Gross profit$176,005 $201,000 Selling expenses$(64,400) $(46,000)Administrative expenses(37,350) (29,000)Total operating expenses$(101,750) $(75,000)Operating income$74,255 $126,000 Other revenue2,887 2,300 Income before income tax expense$77,142 $128,300 Income tax expense(21,600) (38,500)Net income$55,542 $89,800 20Y2 20Y1Increase/ (Decrease) AmountIncrease/ (Decrease) PercentSales$624,805$541,000 Cost of goods sold(448,800)(340,000) Gross profit$176,005$201,000 Selling expenses$(64,400)$(46,000) Administrative expenses(37,350)(29,000) Total operating expenses$(101,750)$(75,000) Operating income$74,255$126,000 Other revenue2,8872,300 Income before income tax expense$77,142$128,300 Income tax expense(21,600)(38,500) Net income$55,542$89,800