horizontal analysis of income statement For 2012, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 2012 2011 Sales Cost of goods sold Gross profit $462,216 $408,000 (332,800) (260,000) $129,416 $148,000 Selling expenses $(45,900) $(34,000) Administrative expenses (27,540) (22,000) Total operating expenses $(73,440) $(56,000) Operating income $55,976 $92,000 Other revenue 2,162 1,700 Income before income tax expense $58,138 $93,700 Income tax expense (16,300) (28,100) Net income $41,838 $65,600 Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) Sales 2012 2011 Amount Percent $462,216 $408,000 $ Cost of goods sold (332,800) (260,000) Gross profit Selling expenses Administrative expenses Total operating expenses $129,416 $148,000 $(45,900) $(34,000) S (27,540) (22,000) $(73,440) (56,000) s Operating income $55,976 $92,000 $ Other revenue 2,162 1,700 Income before income tax expense $58,138 $93,700 $ Income tax expense (16,300) (28,100) Net income 2. Net income has the cost of goods sold has $41,838 $65,600 $ from 2011 to 2012. Sales have! however, at a faster rate than sales, causing the gross profit to