Horizontal Analysis for Income Statement For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement: GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2 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 $765,660 (550,400) $215,260 s (76,950) (45,070) (122,020) $93,240 3,402 96,642 (27,100) 69,542 674,000 (430,000) 244,000 $ (57,000) (36,000) (93,000) $151,000 2,800 $153,800 (46,100) 107,700 Instructions: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y2 as the base year. Enter decreases as negative amounts and negative percentages. Round percentage changes to one decimal place Greyhound Technology Company Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 Increase (Decrease) Increase (Decrease) 20Y3 20Y2 Amount Percent Sales Cost of goods sold Gross proft Selling expenses Administrative expenses Total operating expenses 122,020) $93,000) Income from operations$ Other income Income before income tax $96,642 $153,800 Income tax expense Net income $765,660 $674,000 (550,400) (430,000) $215,260 $244,000 $(76,950) $(57,000) (45,070) (36,000) $93,240 $151,000 3,402 2,800 (27,100) (46,100) $69,542 $107,700 2. Based on the horizontal analysis prepared in 1 which of the following statements is correct? a. Net income declined from 20Y2 to 20Y3 b. Sales increased, but the cost of goods also increased causing gross profit to decline c. Other revenues decreased slightly and income tax expense increased d. Over all there is decline in net income