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 $656,735 $589,000 458,800 370,000 $197,935 $219,000 Selling expenses Administrative expenses $65,000 $50,000 37,700 31,000 Total operating expenses $102,700 $81,000 Income from operations $95,235 $138,000 Other revenue 3,038 2,500 Income before income tax $98,273 $140,500 Income tax expense 27,500 42,200 Net income $70,773 $98,300 Required: Require 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 "Increase (Decrease)" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales Cost of goods sold 20Y2 20Y1 $656,735 $589,000 458,800 370,000 Difference Amount Difference - Percent % % Gross profit $197,935 $219,000 % Selling expenses $65,000 $50,000 % Administrative expenses 37,700 31,000 % Total operating expenses $102,700 $81,000 % Income from operations $95,235 $138,000 % Other revenue 3,038 2,500 % Income before income tax $98,273 $140,500 % Income tax expense Net income 27,500 42,200 $70,773 $98,300 % % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has 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, 20Y2 and 20Y1 20Y2 20Y1 Difference Amount Difference - Percent Sales $656,735 $589,000 $ % Cost of goods sold 458,800 370,000 % Gross profit $197,935 $219,000 % Selling expenses $65,000 $50,000 % Administrative expenses 37,700 31,000 % Total operating expenses $102,700 $81,000 96 Income from operations $95,235 $138,000 % Other revenue 3,038 2,500 % Income before income tax $98,273 $140,500 $ % Income tax expense 27,500 42,200 % Net Income $70,773 $98,300 % 2. Net income has from 20Y1 to 20Y2. Sales have l , causing the gross profit to ; however, the cost of goods sold has