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 20Y1 Sales $ 16,800,000 $ 15,000,000 Cost of goods sold (11,500,000) (10,000,000 Gross profit $ 5,300,000 $5,000,000 Selling expenses $ (1,770,000) $ (1,500,000) Administrative expenses (1,220,000) (1,000,000) Total operating expenses $ (2,990,000) $ (2,500,000) Operating income $ 2,310,000 $2,500,000 Other revenue 256,950 225,000 Income before income tax expense $ 2,566,950 $ 2,725,000 Income tax expense (1,413,000) (1,500,000) Net income $ 1,153,950 $ 1,225,000 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 For the Years Ended December 31, 20Y2 and 2041 Increase/(Decrease) 20Y2 20Y1 Amount $ 16,800,000 $15,000,000 $ 1,800,000 Percent Sales 12.00 % Cost of goods sold 11,500,000 X 10,000,000 X 1,500,000 15.00 Gross profit $ 5,300,000 $5,000,000 $ 300,000 6.00 % Selling expenses $ $ $ 18.00 1,770,000 1,220,000 X X 1,500,000 1,000,000 X X 270,000 220,000 Administrative expenses Total operating expenses $ % % % % 22.00 19.60 -7.60 490,000 19.60 Accounting numeric field Operating income -190,000 31,950 Other revenue 14.20 Income before income tax expense $ $ 158,050 -5.80 % Income tax expense -87,000 -5.80 Net income -71,050 -5.80 %