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, 20Y2 and 20Y1 Sales Cost of goods sold 2012 2011 $796,680 $684,000 ($76,200) (430,000) $220,480 $254,000 Gross profit Selling expenses Administrative expenses Total operating expenses $(82,650) $(58,000) (47,020) (36,000) $(129,670) $(94,000) $90,810 $160,000 Operating income Other revenue 3,683 Income before income tax expense $94,493 2,900 $162,900 Income tax expense Net income (26,500) (48,900) $67,993 $114,000 Required: 1 Dranara comparative.income.statement.with.bocizontalanalusis.for.the.beac.parindaine 30xas.the.ham.aces.the.minus dacceace 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) Amount Percent Line Item Description 2012 201 Sales Cost of goods sold $796,680 $684,000 (576,200) (430,000) 196 Gross profit $220,480 $254,000 Selling expenses 4(02,650) $(50,000) Administrative expenses Total operating expenses Operating Income Other revenue (47,020) (36,000) $(129,670) $(94,000) $90,010 $160,000 3,683 2,900 Income before income tax expense $94,493 $162,900 96 Income tax expense (26,500) (43,900) Net income $67,993 $114,000