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 20Y2 2011 Sales $501,400 $437,000 Cost of goods sold (364,000) (280,000) Gross profit $137,400 $157,000 Selling expenses $(37,000) $(50,880) (29,210) Administrative expenses (23,000) Total operating expenses $(80,090) $(60,000) Operating income $57,310 $97,000 Other revenue 2,160 1,800 Income before income tax expense $59,470 $98,800 Income tax expense (16,700) (29,600) Net income $42,770 $69,200 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, 2012 and 2011 Increase/ Increase/ (Decrease) (Decrease) 20Y2 20Y1 Amount Percent $501,400 $437,000 % Sales Cost of goods sold (364,000) (280,000) % Gross profit $137,400 $157,000 % Total operating expenses $(80,090) $(60,000) Operating income $57,310 $97,000 Other revenue 2,160 1,800 Income before income tax expense $59,470 $98,800 Income tax expense (16,700) (29,600) Net income $42,770 $69,200 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 2011 Increase/ Increase/ (Decrease) (Decrease) 20Y2 20Y1 Amount Percent $501,400 $437,000 % Sales Cost of goods sold (364,000) (280,000) % Gross profit $137,400 $157,000 % Selling expenses $(50,880) $(37,000) % Administrative expenses (29,210) (23,000) % Total operating expenses $(80,090) $(60,000) % Operating income $57,310 $97,000 % Other revenue 2,160 1,800 % Income before income tax expense $59,470 $98,800 $ % Income tax expense (16,700) (29,600) % Net income $42,770 $69,200 % 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 profit to