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 2011 Sales Cost of goods sold Gross profe Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income 2012 2011 $839,468 $712,000 (639,000) (450,000) $220,468 $252,000 (91,500) $(60,000) (52,360) (36,000) $(143,860) $(98,000) $76,608 $164,000 3,7921 3,000 $80,400 $167,000 (22,500) $57,900 (50,100) $116,900 Required: 3. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 201 2012 2011 Increase/ Increase/ (Decrease) (Decrease) Amount Percent Sales $859,458 $712,000 Cast of goods sold (639,000) (450,000) Gross prof $220,468 $262,000 Selling expenses s(91,500) (60,000) Administrative expenses Total operating expenses Operating income Other revenue (52,360) (38,000) $143.860) (98,000) $76.408 $364,000 3,000 3,793 Income before income tax expense $40,400 $147,000 (23,500) (0,100) Net income $57,900 $114,900 3. Net ne has 2011 2012. Se have crease/Decrease sae, cauling the