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 2041 2042 2011 Sales $844,240 $712,000 Cost of goods sold (621,000) (450,000) Gross profit $223,240 $262,000 Selling expenses $(88,500) $(60,000) Administrative expenses (51,000) (38,000) Total operating expenses $(139,500) $(98,000) Operating income $83,740 $164,000 Other revenue 3,810 3,000 Income before income tax expense $87,550 $167,000 Income tax expense (24,500) (50,100) Net income $63,050 $116,900 Required: 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 2041 Increase/ Increase/ (Decrease) (Decrease) 20Y2 20Y1 Amount Percent $844,240 $712,000 $ Cost of goods sold (621,000) (450,000) % Sales % $223,240 $262,000 $ % Gross profit Selling expenses % $(88,500) $(60,000) (51,000) (38,000) Administrative expenses % Total operating expenses $(139,500) $(98,000) % Operating income $83,740 $164,000 $ % Other revenue 3,810 3,000 % Income before income tax expense $167,000 $ % $87,550 (24,500) Income tax expense (50,100) % Net income $63,050 $116,900 % 2. Net income has ; however, the cost of goods sold from 20Y1 to 2042. Sales have at a faster rate than sales, causing the gross profit to has