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 2041 2012 2011 Sales $695,860 Cost of goods sold 480,000 $215,860 $636,000 400,000 $236,000 $54,000 34,000 Gross pront Selling expenses Administrative expenses Total operating expenses Income from operations $67,500 40,120 $107,620 $88,000 $148,000 $108,240 Other income 3,267 2,700 $150,700 Income before income tax $111,507 31,200 Income tax expense 45,200 Net income $80,307 $105,500 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2071 as the base year. Use the minus sign to indicate a decrease in the "Difference columns. If required, round to one decimal place. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Difference - Amount Difference. Percent Sales $695,860 $636,000 $ % Cost of goods sold 480,000 400,000 Gross profit $215,860 $236,000 Selling expenses $67,500 $54,000 Administrative expenses 40,120 34,000 Total operating expenses $107,620 $88,000 Income from operations $108,240 $145,000 Other income 3,267 2,700 Income before income tax $111.507 5150,700 Income tax expense 31,200 45,200 Net income $0,307 $105,500 from 2011 to 2012. Sales have 2. Net income has gross pront to Mihowever, the cost of goods sold hos causing the