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	$896,844		$741,000
Cost of goods sold	(667,400)		(470,000)
Gross profit	$229,444		$271,000
Selling expenses	$(94,550)		$(62,000)
Administrative expenses	(53,740)		(39,000)
Total operating expenses	$(148,290)		$(101,000)
Operating income	$81,154		$170,000
Other revenue	3,732		3,100
Income before income tax expense	$84,886		$173,100
Income tax expense	(23,800)		(51,900)
Net income	$61,086		$121,200

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	$896,844	$741,000	$	%
Cost of goods sold	(667,400)	(470,000)		%
Gross profit	$229,444	$271,000	$	%
Selling expenses	$(94,550)	$(62,000)	$	%
Administrative expenses	(53,740)	(39,000)		%
Total operating expenses	$(148,290)	$(101,000)	$	%
Operating income	$81,154	$170,000	$	%
Other revenue	3,732	3,100		%
Income before income tax expense	$84,886	$173,100	$	%
Income tax expense	(23,800)	(51,900)		%
Net income	$61,086	$121,200	$	%