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 merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense Net income Required: 2012 20Y1 $451,000 $380,000 331,200 240,000 $119,800 $140,000 $47,200 $32,000 26,840 20,000 $74,040 $52,000 $45,760 $88,000 2,000 1,600 $47,760 $89,600 13,400 $34,360 26,900 $62,700 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. Use the minus sign to indicate a decrease in the "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 Required: 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. Use the minus sign to indicate a decrease in the "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Difference Difference. -Amount Percent Sales 2012 $451,000 $380,000 20Y1 % Cost of merchandise sold 331,200 240,000 % Gross profit Selling expenses $119,800 $140,000 % Administrative expenses i $47,200 $32,000 26,840 20,000 Total operating expenses $74,040 $52,000 Income from operations $45,760 $88,000 2,000 1,600 Other revenue Income before income tax expense $47,760 $89,600 Income tax expense Net income 13,400 26,900 $34,360 $62,700 2. Net income has, from 20Y1 to 2012. Sales have ; however, the cost of merchandise sold has causing the gross profit to l