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 20Y1 as the base year. Round percentages to one decimal place. For those boxes in which you must enter subtracted or negative numbers use a minus sign. McDade Company Comparative Income Statement 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1). Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has pace than sales. In addition, total operating expenses have sales have caused the net income to at a faster rate than sales. at a faster rate than sales. causing the gross profit to increase at a in costs and expenses that are higher than the increase