Horizontal Analysis of Income Statement For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense Net income $361,472 262,200 $99,272 $38,350 21,470 $59,820 $39,452 1,570 $41,022 11,500 $29,522 20Y1 $304,000 190,000 $114,000 $26,000 16,000 $42,000 $72,000 1,300 $73,300 22,000 $51,300

Horizontal Analysis of Income Statement For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20 Y 1 as the base year. Round percentages to one decimal place, Use the minus sign to indicate a decrease in the "Difference" columns. 2. Net income has from 201 to 20r2. Sales have however, the cost of merchandise sold has causing the gross profit to