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 $857,180 $750,000 Cost of merchandise sold 611,000 470,000 Gross profit $246,180 $280,000 Selling expenses $86,630 $63,000 Administrative expenses 50,800 40,000 Total operating expenses $137,430 $103,000 Income from operations $108,750 $177,000 Other revenue 4,106 3,200 Income before income tax expense $112,856 $180,200 Income tax expense 31,600 54,100 Net income $81,256 $126,100 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 20Y2 20Y1 Sales $857,180 $750,000 $ % Cost of merchandise sold 611,000 470,000 % Gross profit $246,180 $280,000 $ % Selling expenses $86,630 $63,000 % Administrative expenses 50,800 40,000 % Total operating expenses $137,430 $103,000 $ % Income from operations $108,750 $177,000 $ % Other revenue 4,106 3,200 % Income before income tax expense $112,856 $180,200 $ % Income tax expense 31,600 54,100 % Net income $81,256 $126,100 $ % 2. Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of merchandise sold has , causing the gross profit to