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 $607,154 (428,400) $541,000 (340,000) Cost of goods sold Gross profit $178,754 $201.000 Selling expenses $(60,950) (35,790) Administrative expenses $(46,000) (29,000) $(75,000) Total operating expenses $(96,740) Operating income $82,014 $126.000 Other revenue 2.930 2.300 Income before income tax expense $84,944 $120,300 Income tax expense (23,800) (38,500) Net Income $89,800 $61,144 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 CARVEN Tncome before income tax expense $84,944 $128,300 Income tax expense (23.800 (38,500) Net Income $61,164 $89.800 Required fun to indicate a decrease in 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Use the the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Mackin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2041 Increased increased (Decrease) (Decrease 2012 2011 Amount Sales 5607,154 541,000 Cost of goods sold (428,400) (340,000) Gross pront $17.754 201 000 Selling expenses 5(60,950) (46,000) Administrative expenses (35.790) 29,000) 596,00) 25,000) Operating income $82,014 $126.000 Other revenue 2930 2,300 Income before $94.94 $120.000 02 $61.144 $89.800