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	$698,298		$617,000
Cost of goods sold	499,200		390,000
Gross profit	$199,098		$227,000
Selling expenses	$70,200		$52,000
Administrative expenses	41,320		33,000
Total operating expenses	$111,520		$85,000
Income from operations	$87,578		$142,000
Other revenue	3,364		2,600
Income before income tax	$90,942		$144,600
Income tax expense	25,500		43,400
Net income	$65,442		$101,200

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.

McDade Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1	Difference - Amount	Difference - Percent
Sales	$698,298	$617,000	$fill in the blank 9f988401ef87fb6_1	fill in the blank 9f988401ef87fb6_2%
Cost of goods sold	499,200	390,000	fill in the blank 9f988401ef87fb6_3	fill in the blank 9f988401ef87fb6_4%
Gross profit	$199,098	$227,000	$fill in the blank 9f988401ef87fb6_5	fill in the blank 9f988401ef87fb6_6%
Selling expenses	$70,200	$52,000	$fill in the blank 9f988401ef87fb6_7	fill in the blank 9f988401ef87fb6_8%
Administrative expenses	41,320	33,000	fill in the blank 9f988401ef87fb6_9	fill in the blank 9f988401ef87fb6_10%
Total operating expenses	$111,520	$85,000	$fill in the blank 9f988401ef87fb6_11	fill in the blank 9f988401ef87fb6_12%
Income from operations	$87,578	$142,000	$fill in the blank 9f988401ef87fb6_13	fill in the blank 9f988401ef87fb6_14%
Other revenue	3,364	2,600	fill in the blank 9f988401ef87fb6_15	fill in the blank 9f988401ef87fb6_16%
Income before income tax	$90,942	$144,600	$fill in the blank 9f988401ef87fb6_17	fill in the blank 9f988401ef87fb6_18%
Income tax expense	25,500	43,400	fill in the blank 9f988401ef87fb6_19	fill in the blank 9f988401ef87fb6_20%
Net income	$65,442	$101,200	$fill in the blank 9f988401ef87fb6_21	fill in the blank 9f988401ef87fb6_22%

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