Horizontal Analysis of Income Statement For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Sales Cost of goods sold Gross profit Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income Required: 2012 2011 $806,223 $731,000 (561,200) (460,000) $245,023 $271,000 $(79,050) $(62,000) (46,720) (39,000) $(125,770) $(101,000) $119,253 $170,000 3,853 3,100 $123,106 $173,100 (34,500) $88,606 (51,900) $121,200 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrem the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 2012 20Y1 Amount Percent Sales Cost of goods sold $806,223 $731,000 (561,200) (460,000) % Gross profit Selling expenses $245,023 $271,000 $(79,050) $(62,000) Administrative expenses (46,720) (39,000) Total operating expenses) $(125,770) $(101,000) Operating income $119,253 $170,000 % Other revenue 3,853 3,100 % Income before income tax expense $123,106 $173,100 Income tax expense Net income (34,500) $88,606 (51,900) % $121,200 2. Net income has from 20Y1 to 20Y2. Sales have i ; however, the cost of goods sold has at a faster rate than sales, causing the gross profit to)