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	$837,013		$693,000
Cost of goods sold	(624,800)		(440,000)
Gross profit	$212,213		$253,000
Selling expenses	$(88,450)		$(58,000)
Administrative expenses	(50,990)		(37,000)
Total operating expenses	$(139,440)		$(95,000)
Operating income	$72,773		$158,000
Other revenue	3,628		2,900
Income before income tax expense	$76,401		$160,900
Income tax expense	(21,400)		(48,300)
Net income	$55,001		$112,600

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	$837,013	$693,000	$	%
Cost of goods sold	(624,800)	(440,000)		%
Gross profit	$212,213	$253,000	$	%
Selling expenses	$(88,450)	$(58,000)	$	%
Administrative expenses	(50,990)	(37,000)		%
Total operating expenses	$(139,440)	$(95,000)	$	%
Operating income	$72,773	$158,000	$	%
Other revenue	3,628	2,900		%
Income before income tax expense	$76,401	$160,900	$	%
Income tax expense	(21,400)	(48,300)		%
Net income	$55,001	$112,600	$	%