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 20Y2 20Y1 Sales Cost of goods sold Gross profit $705,591 $589,000 518,000 370,000 $187,591 $219,000 Selling expenses Administrative expenses Total operating expenses $75,000 $50,000 42,160 31,000 $117,160 $81,000 Income from operations $70,431 $138,000 Other revenue 3,098 2,500 Income before income tax $73,529 $140,500 Income tax expense 20,600 42,200 Net income $52,929 $98,300 Required: