Honzontal Analysis of Income Statement For 2012, 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 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other income Income before income tax Income tax expense Net income Required: 2012 20Y1 $397,157 $351,000 281,600 220,000 $115,557 $131,000 $40,500 $30,000 23,790 19,000 $64,290 $49,000 $51,267 $82,000 1,946 1,500 $53,213 14,900 $83,500 25,100 $38,313 $58,400 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 Net income Required: $38,313 $58,400 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. Sales Cost of goods sold Gross profit McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 2011 Difference Amount Difference - Percent 2012 $397,157 $351,000 281,600 220,000 $115,557 $131,000 $40,500 $30,000 Selling expenses Administrative expenses 23,790 19,000 % % Total operating expenses $64,290 $49,000 Income from operations $51,267 $82,000 Other income 1,9461 1,500 Income before income tax $53,213 $83,500 Income tax expense Net income 14,900 25,100 $38,313 $58,400 2. Net income has the gross profit to from 2011 to 2012. Sales have L ; however, the cost of goods sold has , causing