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 2012 2011 Sales $550,704 $456,000 Cost of goods sold (411,800) (290,000) Gross profit Selling expenses Administrative expenses $130,904 $166,000 $(57,950) 138,000) (33,070) (24,000) Total operating expenses s(91,020) $(62,000) Operating income $47,884 $104,000 Other revenue 2,383 1,900 Income before income tax expense $50,267 $105,900 Income tax expense (14,100) (31,000) Net income 136,167 $74,100 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 2011 Increase/ Increase/ (Decrease) (Decrease) Amount Percent 2012 Sales Cost of goods sold 2011 $550,704 $456,000 (411,000) (290,000) Gross profit Selling expenses $138,904 $166,000 $(57,950) $(38,000) Administrative expenses (33,070) (24,000) Total operating expenses s(91,020) (62,000) Operating income Other revenue Income before income tax expense Income tax expense $47,004 2,383 $104,000 s 1,900 $50,267 $105,900 (14,100) (31,000) Net income $36,167 $74,100 2. Net income has from 2011 to 2012. Sales have ; however, the cost of goods sold has ata faster rate than sales, causing the grass profit to