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 20Y1
	20Y2		20Y1
Sales	$861,600		$760,000
Cost of goods sold	(614,400)		(480,000)
Gross profit	$247,200		$280,000
Selling expenses	$(86,400)		$(64,000)
Administrative expenses	(50,080)		(40,000)
Total operating expenses	$(136,480)		$(104,000)
Operating income	$110,720		$176,000
Other revenue	4,032		3,200
Income before income tax expense	$114,752		$179,200
Income tax expense	(32,100)		(53,800)
Net income	$82,652		$125,400

Required:

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
	20Y2	20Y1	Increase/ (Decrease) Amount	Increase/ (Decrease) Percent
Sales	$861,600	$760,000	$fill in the blank 03b6aa02a00efa4_1	fill in the blank 03b6aa02a00efa4_2%
Cost of goods sold	(614,400)	(480,000)	fill in the blank 03b6aa02a00efa4_3	fill in the blank 03b6aa02a00efa4_4%
Gross profit	$247,200	$280,000	$fill in the blank 03b6aa02a00efa4_5	fill in the blank 03b6aa02a00efa4_6%
Selling expenses	$(86,400)	$(64,000)	$fill in the blank 03b6aa02a00efa4_7	fill in the blank 03b6aa02a00efa4_8%
Administrative expenses	(50,080)	(40,000)	fill in the blank 03b6aa02a00efa4_9	fill in the blank 03b6aa02a00efa4_10%
Total operating expenses	$(136,480)	$(104,000)	$fill in the blank 03b6aa02a00efa4_11	fill in the blank 03b6aa02a00efa4_12%
Operating income	$110,720	$176,000	$fill in the blank 03b6aa02a00efa4_13	fill in the blank 03b6aa02a00efa4_14%
Other revenue	4,032	3,200	fill in the blank 03b6aa02a00efa4_15	fill in the blank 03b6aa02a00efa4_16%
Income before income tax expense	$114,752	$179,200	$fill in the blank 03b6aa02a00efa4_17	fill in the blank 03b6aa02a00efa4_18%
Income tax expense	(32,100)	(53,800)	fill in the blank 03b6aa02a00efa4_19	fill in the blank 03b6aa02a00efa4_20%
Net income	$82,652	$125,400	$fill in the blank 03b6aa02a00efa4_21	fill in the blank 03b6aa02a00efa4_22%

2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has at a faster rate than sales, causing the gross profit to .