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 $710,954 $589,000 Sales 525,400 370,000 Cost of goods sold Gross profit $185,554 $219,000 $76,250 $50,000 Selling expenses 42,720 31,000 Administrative expenses $81,000 $118,970 Total operating expenses $66,584 $138,000 Income from operations 3,165 2,500 Other revenue $69,749 $140,500 Income before income tax 19,500 42,200 Income tax expense $50,249 $98,300 Net income Required: 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 "Increase (Decrease)" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 201 20Y2 Difference -Amount Difference- Percent Sales $710,954 $589,000 % Cost of goods sold 525,400 370,000 Gross profit $185,554 $219,000 Selling expenses $76,250 $50,000 % Administrative expenses 42,720 31,000 % Total operating expenses $118,970 $81,000 % Income from operations $66,584 $138,000 % Other revenue 3,165 2,500 % Income before income tax $69,749 $140,500 % Income tax expense 19,500 42,200 % $50,249 $98,300 Net income 2. Net income has from 20Y1 to 20Y2. Sales have ;however, the cost of goods sold has , causing the gross profit to Calculator ook Print Iterm Show Me How Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows: Previous Year Current Year Current assets $256,650 $139,440 Property, plant, and equipment 539,850 491,360 Intangible assets 88,500 33,200 Current liabilities 194,700 99,600 Long-term liabilities 362,850 305,440 88.500 Common stock 86,320 Retained earnings 238,950 172,640 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders equity. If required, round percentages to one decimal place. Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Current Current Previous Previous year Amount Percent year year Amount year Percent Current assets $256,650 $139,440 Print Item Calculator Show Me How eBook Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Alvaraz Company Comparative Balance Sheet For the Years Ended December 31 Previous Previous year Percent Current Current year Percent year Amount year Amount $139,440 $256,650 Current assets 210 % 491,360 539,850 Property, plant, and equipment 33,200 88,500 Intangible assets $664,000 $885,000 Total assets $99,600 $194,700 Current liabilities 305,440 362,850 Long-term liabilities 86,320 88,500 Common stock 172,640 238,950 Retained earnings $664,000 $885,000 Total liabilities and stockholders' equity Next Previous Check My Work