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 2041 20Y2 20Y1 Sales $703,793 $589,000 518,000 Cost of goods sold Gross profit 370,000 $219,000 $185,793 Selling expenses Administrative expenses $75,000 42,160 $50,000 31,000 $117,160 $81,000 Total operating expenses Income from operations $68,633 $138,000 Other income 3,243 2,500 Income before income tax $71,876 $140,500 Income tax expense 20,100 42,200 Net income $51,776 $98,300 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 "Difference" columns. If required, round to one decimal place. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2041 20Y2 20Y1 Difference - Amount Difference - Percent Sales $703,793 $589,000 % Cost of goods sold 518,000 370,000 % Gross profit $ $185,793 $219,000 $ % Selling expenses $75,000 $50,000 % Administrative expenses 42,160 31,000 % Total operating expenses $117,160 $81,000 % Income from operations $68,633 $ $138,000 $ % Other income 3,243 2,500 % Income before income tax $71,876 $140,500 $ % Income tax expense 20,100 42,200 % Net income $51,776 $98,300 $ % 2. Net income has from 20Y1 to 20Y2. Sales have however, the cost of goods sold has causing the gross profit to