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 20Y1 20Y2 20Y1 Sales $397,932 $332,000 Cost of goods sold (294,000) (210,000) Gross profit Selling expenses $103,932 $122,000 $(42,000) $(28,000) Administrative expenses (24,480) (18,000) Total operating expenses $(66,480) $(46,000) Operating income $37,452 $76,000 Other revenue 1,716 1,400 Income before income tax expense $39,168 $77,400 Income tax expense (11,000) (23,200) Net income $28,168 $54,200 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 20Y2 Sales Cost of goods sold 20Y1 $397,932 $332,000 (294,000) (210,000) Increase Increase/ (Decrease) (Decrease) Amount Percent % % Gross profit $103,932 $122,000 % Selling expenses $(42,000) $(28,000) % Administrative expenses (24,480) (18,000) % Total operating expenses $(66,480) $(46,000) % Operating income $37,452 $76,000 $ % Other revenue 1,716 1,400 % Income before income tax expense $39,168 $77,400 % Income tax expense (11,000) (23,200) % Net income $28,168 $54,200 %