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	$518,420		$437,000
Cost of goods sold	386,400		280,000
Gross profit	$132,020		$157,000
Selling expenses	$54,580		$37,000
Administrative expenses	30,870		23,000
Total operating expenses	$85,450		$60,000
Income from operations	$46,570		$97,000
Other income	2,268		1,800
Income before income tax	$48,838		$98,800
Income tax expense	13,700		29,600
Net income	$35,138		$69,200

Required:

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 "Difference" columns. If required, round to one decimal place.

McDade Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1	Difference - Amount	Difference - Percent
Sales	$518,420	$437,000	$	%
Cost of goods sold	386,400	280,000		%
Gross profit	$132,020	$157,000	$	%
Selling expenses	$54,580	$37,000	$	%
Administrative expenses	30,870	23,000		%
Total operating expenses	$85,450	$60,000	$	%
Income from operations	$46,570	$97,000	$	%
Other income	2,268	1,800		%
Income before income tax	$48,838	$98,800	$	%
Income tax expense	13,700	29,600		%
Net income	$35,138	$69,200	$	%

2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has , causing the gross profit to .