Horizontal Analysis of Income Statement decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed For 20Y2, McDade Company reported comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 Sales $541,650 $465,000 Cost of goods sold 388,600 290,000 Gross profit $153,050 $175,000 Selling expenses $55,580 $39,000 Administrative expenses 32,650 25,000 Total operating expenses $88,230 $64,000 Income from operations $64,820 $111,000 Other income 2,532 2,000 Income before income tax $67,352 $113,000 Income tax expense 18,900 33,900 Net income $48,452 $79,100 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 $541,650 $465,000 % Cost of goods sold 388,600 290,000 % Gross profit $153,050 $175,000 % Selling expenses $55,580 $39,000 % Administrative expenses 32,650 25,000 % Total operating expenses $88,230 $64,000 % Income from operations $64,820 $111,000 $ % Other income 2,532 2,000 % Income before income tax $67,352 $113,000 % Income tax expense 18,900 33,900 % Net income $48,452 $79,100 $ % increased decreased from 20Y1 to 20Y2. Sales have however, the cost of goods sold has 2. Net income has causing the gross profit to