For 20Y2, 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 2012 2011 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) Operating income $ 2,310,000 $ 2,500,000 Other revenue 256,950 225,000 Income before income tax expense $ 2,566,950 $ 2,725,000 Income tax expense (1,413,000) (1,500,000) Net income $ 1,153,950 $ 1,225,000 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Increase/(Decrease) 20Y2 Amount Percent Sales % Cost of goods sold 0000 Gross profit s % Selling expenses % Administrative expenses % Total operating expenses % Operating income % Other revenue Income before income tax expenses % Income tax expense % Net income % 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1). Net income has causing the gross profit to increase at a pace than sales. In addition, total operating expenses have at a faster rate than sales. from 20Y1 to 2042. Sales have ; however, the cost of goods sold has in costs and expenses that are higher than the increase in sales have caused the net income to