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 2012 20Y1 Sales $690,756 $627,000 Cost of goods sold 488,000 400,000 Gross profit $202,756 $227,000 $67,580 $53,000 Selling expenses Administrative expenses 39,530 33,000 Total operating expenses Income from operations $107,110 $95,646 $86,000 $141,000 Other income 3,297 2,600 Income before income tax $98,943 $143,600 Income tax expense 27,700 43,100 Net income $71,243 $100,500 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 20Y1 2012 2011 Difference - Amount Difference - Percent $690,756 $627,000 $ 488,000 400,000 Sales Cost of goods sold Gross profit $202,756 $227,000 $ Selling expenses $67,580 $53,000 $ Administrative expenses 39,530 33,000 Total operating expenses $107,110 $86,000 $ Income from operations $95,646 $141,000 $ Other income 3,297 2,600 Income before income tax $98,943 $143,600 $ Income tax expense 27,700 43,100 Net income $71,243 $100,500 $ from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has 2. Net income has causing the gross profit to