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: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Sales $811,870 $722,000 Cost of goods sold (579,600) (460,000) Gross profit $232,270 $262,000 Selling expenses $(80,830) $(61,000) Administrative expenses (46,890) (38,000) Total operating expenses $(127,720) $(99,000) Operating income $104,550 $163,000 Other revenue 3,705 3,000 Income before income tax expense $108,255 $166,000 Income tax expense (30,300) (49,800) Net income $77,955 $116,200 Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2041 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 Ins. 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 For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 20Y2 20Y1 Amount Percent Sales $811,870 $722,000 $ % Cost of goods sold (579,600) (460,000) % Gross profit $232,270 $262,000 $ % % Selling expenses % $(80,830) $(61,000) $ (46,890) (38,000) Administrative expenses % Total operating expenses $(127,720) $(99,000) % Operating income $104,550 $163,000 $ % 3,705 Other revenue 3,000 01010 % Income before income tax expense $108,255 $166,000 $ % Income tax expense (30,300) (49,800) % Net income $77,955 $116,200 $ % ; however, the cost of goods sold has at a faster 2. Net income has from 20Y1 to 20Y2. Sales have rate than sales, causing the gross profit to