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 20Y2 20Y1 Sales 5487,876 $427,000 Cost of goods sold (351,000) (270,000) Gross profit 5136,876 $157,000 Selling expenses $(49,500) $(36,000) Administrative expenses (29,210) (23,000) Total operating expenses $(78.710) $(59,000 Operating income $58,166 $98.000 Other revenue 2.318 Income before income tax expense $60,484 $99,800 Income tax expense (16,900) (29,900) Net income $43,584 $69.900 1,800 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 2041 Increase/ Increase/ (Decrease) (Decrease) 2012 2011 Amount Percent Sales $487,876 $427,000 % Cost of goods sold (351,000) (270.000) % Gross profit $136,876 $157,000 % Selling expenses $(49,500) $(36.000) $() s % Administrative expenses (29,210) (23,000) Total operating expenses $(78,710) $(59,000) ($ % Operating income 558.166 598,000 $ % Other revenue 2,318 1,800 % Income before income tax expense 560,484 599,800 $ % Income tax expense (16,900 (29,900) % Net income 543,584 569.900 %