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, 2012 and 20Y1 20Y2 20Y1 Sales $559,850 $475,000 Cost of merchandise sold 408,000 300,000 $151,850 $175,000 Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense Net income Required: $58,000 $40,000 33,100 25,000 $91,100 $65,000 $60,750 $110,000 2,412 2,000 $63,162 $112,000 17,700 33,600 $45,462 $78,400 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. Use the minus sign to indicate a decrease in the "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Difference Difference - Amount - Percent Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses 20Y2 20Y1 $559,850 $475,000 $ 408,000 300,000 $151,850 $175,000 $58,000 $40,000 33,100 25,000 % % % % % $91,100 $65,000 $ % Income from operations $60,750 $110,000 % Other revenue Income before income tax expense $63,162 $112,000 Income tax expense Net income 2,412 2,000 17,700 33,600 $45,462 $78,400 Jo Jo do do % % % % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of merchandise sold has causing the gross profit to