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: Sales Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $881,361 $741,000 Cost of goods sold Gross profit Selling expenses Administrative expenses (648,600) (470,000) $232,761 $271,000 $(91,450) $(62,000) (52,340) (39,000) Total operating expenses $(143,790) $(101,000) Operating income $88,971 $170,000 Other revenue 3,723 Income before income tax expense $92,694 3,100 $173,100 Income tax expense (26,000) $66,694 (51,900) $121,200 Net income 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 "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase Increase/ (Decrease) (Decrease) Amount Percent Line Item Description 20Y2 20Y1 Sales $881,361 $741,000 $ % Cost of goods sold Gross profit (648,600) (470,000) % $232,761 $271,000 $ % Selling expenses $(91,450) $(62,000) % Administrative expenses Total operating expenses Operating income Other revenue (52,340) (39,000) $(143,790) $(101,000) $ $88,971 $170,000 3,723 % % % 3,100 % Income before income tax expense $92,694 $173,100 % Income tax expense (26,000) (51,900) % Net income $66,694 $121,200 $ % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has at a faster rate than sales, causing the gross profit to