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 $692,072 $579,000 Cost of goods sold (518,000) (370,000) Gross profit $174,072 $209,000 Selling expenses $(73,500) $(49,000) Administrative expenses (42,160) (31,000) Total operating expenses $(115,660) $(80,000) Operating income $58,412 $129,000 Other revenue 3,091 2,400 Income before income tax expense $61,503 $131,400 Income tax expense (17,200) (39,400) Net income $44,303 $92,000 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 $692,072 $579,000 $fill in the blank cd6fac02701bfd3_1 113,072 fill in the blank cd6fac02701bfd3_2 % Cost of goods sold (518,000) (370,000) fill in the blank cd6fac02701bfd3_3 148,000 fill in the blank cd6fac02701bfd3_4 % Gross profit $174,072 $209,000 $fill in the blank cd6fac02701bfd3_5 fill in the blank cd6fac02701bfd3_6 % Selling expenses $(73,500) $(49,000) $fill in the blank cd6fac02701bfd3_7 fill in the blank cd6fac02701bfd3_8 % Administrative expenses (42,160) (31,000) fill in the blank cd6fac02701bfd3_9 fill in the blank cd6fac02701bfd3_10 % Total operating expenses $(115,660) $(80,000) $fill in the blank cd6fac02701bfd3_11 fill in the blank cd6fac02701bfd3_12 % Operating income $58,412 $129,000 $fill in the blank cd6fac02701bfd3_13 fill in the blank cd6fac02701bfd3_14 % Other revenue 3,091 2,400 fill in the blank cd6fac02701bfd3_15 fill in the blank cd6fac02701bfd3_16 % Income before income tax expense $61,503 $131,400 $fill in the blank cd6fac02701bfd3_17 fill in the blank cd6fac02701bfd3_18 % Income tax expense (17,200) (39,400) fill in the blank cd6fac02701bfd3_19 fill in the blank cd6fac02701bfd3_20 % Net income $44,303 $92,000 $fill in the blank cd6fac02701bfd3_21 fill in the blank cd6fac02701bfd3_22 % Feedback Compute the difference in each line item amount as either an increase or a decrease. Divide each difference by the 20Y1 base year amount for that item to obtain the horizontal percentage. 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 .