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: Sales Gross profit McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Cost of goods sold Selling expenses Administrative expenses Total operating expenses Operating income Other revenue 2012 $ 16,800,000 (11,500,000) $5,300,000 $ (1,770,000) (1,220,000) $ (2,990,000) $2,310,000 256,950 2011 $15,000,000 (10,000,000) $5,000,000 $ (1,500,000) (1,000,000) $ (2,500,000) $2,500,000 225,000 Income before income tax expense Income tax expense Net income $2,566,950 $2,725,000 (1,413,000) (1,500,000) $1,153,950 $1,225,000 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign McDade Company. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Increase/(Decrease) Amount Percent Previous Next>