Horizontal Analysis of Income Statement For 2012, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required: 2012 2011 $856,362 $741,000 620,400 470,000 $235,962 $271,000 $86,800 $62,000 50,230 39,000 $137,030 $101,000 $98,932 3,850 $170,000 3,100 $102,782 28,800 $73,982 $173,100 51,900 $121,200 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Round percentages to one decimal place. Use the Required: $73,982 $121,200 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. minus sign to indicate a decrease in the "Increase (Decrease)" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Difference Amount Difference Percent 2012 2011 Sales $856,362 $741,000 $ Cost of goods sold Gross profit 620,400 470,000 % % $235,962 $271,000 Selling expenses $86,800 $62,000 Administrative expenses 50,230 39,000 % Total operating expenses $137,030 $101,000 Income from operations $98,932 $170,000 % Other revenue 3,850 3,100 % Income before income tax $102,782 $173,100 % Income tax expense Net income 28,800 51,900 % $73,982 $121,200) % Check My Work Compute the difference in each line item amount as either an increase or a decrease. Divide each difference by the 2011 base year amount for that item to obtain the horizontal percentage Check My Work Previous