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, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$367,946		$313,000
Cost of goods sold	272,000		200,000
Gross profit	$95,946		$113,000
Selling expenses	$37,700		$26,000
Administrative expenses	22,510		17,000
Total operating expenses	$60,210		$43,000
Income from operations	$35,736		$70,000
Other revenue	1,641		1,300
Income before income tax	$37,377		$71,300
Income tax expense	10,500		21,400
Net income	$26,877		$49,900

Required:

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.

Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 2012 20Y1 Difference - Amount Difference - Percent $367,946 $313,000 $ 272,000 200,000 % Sales % Cost of goods sold Gross profit Selling expenses $95,946 $113,000 % % $37,700 $26,000 22,510 17,000 Administrative expenses % % % % Total operating expenses $60,210 $43,000 Income from operations $35,736 $70,000 Other revenue 1,641 1,300 Income before income tax $37,377 $71,300 Income tax expense 10,500 21,400 Net income $26,877 $49,900 % % % 2. Net income has ; however, the cost of goods sold has from 20Y1 to 20Y2. Sales have causing the gross profit to 1