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 $773,126 $646,000 Cost of goods sold 574,000 410,000 Gross profit $199,126 $236,000 Selling expenses $81,000 $54,000 Administrative expenses 46,240 34,000 Total operating expenses $127,240 $88,000 Income from operations $71,886 $148,000 Other income 3,405 2,700 Income before income tax $75,291 $150,700 Income tax expense 21,100 45,200 Net income $54,191 $105,500 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 $773,126 $646,000 $ % Cost of goods sold 574,000 410,000 % Gross profit $199,126 $236,000 $ % Selling expenses $81,000 $54,000 $ % Administrative expenses 46,240 34,000 % Total operating expenses $127,240 $88,000 $ % Income from operations $71,886 $148,000 $ % Other income 3,405 2,700 % Income before income tax $75,291 $150,700 $ % Income tax expense 21,100 45,200 % Net income $54,191 $105,500 $ % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has , causing the gross profit to .