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, 2012 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: 20Y2 20Y1 $629,470 $560,000 441,000 $188,470 350,000 $210,000 $62,280 $47,000 37,020 30,000 $99,300 $77,000 $89,170 $133,000 2,978 2,400 $92,148 25,800 $66,348 $135,400 40,600 $94,800 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 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 Sales Cost of goods sold Gross profit 2012 $629,470 $560,000 441,000 350,000 $188,470 $210,000 20Y1 Difference - Amount Difference - Percent % % % Selling expenses $62,280 $47,000 Administrative expenses 37,020 30,000 % Total operating expenses $99,300 $77,000 % Income from operations $89,170 $133,000 Other revenue 2,978 2,400 % % Income before income tax $92,148 $135,400 Income tax expense Net income 25,800 40,600 $66,348 $94,800 % % 2. Net income has) from 2011 to 2012. Sales have ; however, the cost of goods sold has , causing the gross profit to