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 McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2011 2012 2011 Sales $354,321 $313,000 Cost of merchandise sold 256,000 200,000 Gross profit Selling expenses Administrative expenses $98,321 $113,000 $35,100 $26,000 21,2801 17,000 Total operating expenses $56,380 $43,000 Income from operations $41,941 $70,000 Other revenue 1,673 1,300 Income before income tax expense $43,614 $71,300 Income tax expense 12,200 21,400 Net income $31,414 $49,900