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 20Y2 20Y1 Sales $685,047 $627,000 Cost of goods sold Gross profit (480,000) (400,000) $205,047 $227,000 Selling expenses Administrative expenses $(66,250) $(53,000) (38,940) (33,000) Total operating expenses $(105,190) $(86,000) Operating income $99,857 $141,000 Other revenue 3,227 2,600 Income before income tax expense $103,084 $143,600 Income tax expense (28,900) (43,100) Net income $74,184 $100,500 Required: