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 2041 2012 20Y1 Sales Cost of goods sold Gross profit $619,024 (455,400) $522,000 (330,000) ( $192,000 $163,624 Selling expenses Administrative expenses $(64,900) (37,500) $(44,000) (28,000) $(72,000) $120,000 $(102,480) Total operating expenses Operating income Other revenue $61,144 2,787 2,200 Income before income tax expense Income tax expense $63,931 (17,900) $46,031 $122,200 (36,700) $85,500 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 201 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 2041 Increase/ Increase/ (Decrease) (Decrease) 2012 2011 Amount Percent Sales $619,024 $522,0DD $ % Cost of goods sold (455,400) (330,000) % TET #lligaappappaa |||1666666666 Gross profit $ 163,624 $192,000 % Selling expenses Administrative expenses $(64,900) $(44,000) (37,580) (28,000) Total operating expenses $(102,480) $(72,000) Operating income $61,144 % $120,000 2,200 Other revenue 2,787 % Income before income tax expense $122,200 $63,931 (17,900) Income tax expense (36,700) % 0 Net Income $46,031 $85,500 $ %% 2. Net income has from 20Y1 to 2012. Sales have ; however, the cost of goods sold has at a faster rate than sales, causing the gross profitto