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 $587,088 $522,000 Cost of goods sold (415,800) (330,000) Gross profit $ 171,288 $192,000 Selling expenses $(58,300) $(44,000) Administrative expenses (34,550) (28,000) Total operating expenses $(92,850) $(72,000) Operating income $78,438 $120,000 Other revenue 2,704 2,200 Income before income tax expense $81,142 $122,200 Income tax expense (22,700) (36,700) Net income $58,442 $85,500 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. 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) 2012 2011 Amount Percent Sales $587,088 $522,000 % Cost of goods sold (415,800) (330,000) % Gross profit $171,288 $192,000 % Selling expenses $(58,300) $(44,000) $ % Administrative expenses (34,550) (28,000) % Total operating expenses $(92,850) $(72,000) % Operating income $78,438 $120,000 $ % Other revenue 2,704 2,200 % Income before income tax expense $81,142 $122,200 $ % Income tax expense (22,700) (36,700) % Net income $58,442 $85,500 $ % 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