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 2041 2012 20Y1 Sales $517,750 $475,000 Cost of merchandise sold 360,000 300,000 Gross profit $157,750 $175,000 Selling expenses $50,000 $40,000 Administrative expenses 29,500 25,000 Total operating expenses $79,500 $65,000 Income from operations $78,250 $110,000 Other revenue 2,580 2,000 Income before income tax expense $80,830 $112,000 Income tax expense 22,600 33,600 Net income $58,230 $78,400 Required: 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 "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 Difference Difference - Amount - Percent 2012 2081 Sales $517,750 $475,000 % Cost of merchandise sold 360,000 300,000 % Gross profit $157,750 $175,000 % Selling expenses $50,000 $40,000 % Administrative expenses 29,500 25,000 % % % % % Total operating expenses $79,500 $65,000 Income from operations $78,250 $110,000 Other revenue 2,580 2,000 Income before income tax expense $80,830 $112,000 Income tax expense 22,600 33,600 Net income $58,230 $78,400 % % % 2. Net income has ; however, the cost of merchandise sold has from 20Y1 to 2012. Sales have , causing the gross profit to