Horontal Analysis for Income Statement For 2013, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative Income statement: GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 2043 and 2012 2013 2012 Sales $ 862,000 $ 785,000 Cost of goods sold (650,000 (500,000) Gross profit $ 212.000 $285,000 Selling expenses 5 (44,000) $(40,000) Administrative expenses (27,000) (25,000) Total operating expenses $(71,000) $ (65.000) Income from operations $ 141.000 $ 220,000 2,300 2.000 Other revenue Income before income tax $ 143,300 (20,000 Income tax expense (13,000) $ 130,300 Net Income 5 202.000 Instructions: 1. Prepare a comparative Income statement with horizontal analysis for the two-year period, using 2072 as the base year. Enter decreases as negative amounts and negative percentages. Round percentage changes to one decimal place Greyhound Technology Company Comparative Income Statement For the Years Ended December 31, 2013 and 2012 Oude My Wor 8:58 AM om makerssignment/takeissignment Main.do?imvokera&taktAssignmentSestionlocator&inprogress e false eBook 1. Prepare a comparative Income statement with hortzontal analysis for the two-year period, using 2012 as the base year. Enter decreases as negative amounts and negative percentages. Round percentage changes to one decimal place. Greyhound Technology Company Comparative Income Statement For the Years Ended December 31, 2013 and 2042 Increase (Decrease) Increase (Decrease) 2013 2012 Amount Percent 5862,000 $785,000 Cost of goods sold (650,000) (500,000) Gross profit $212,000 $285,000 Selling expenses 5(44,000) (40,000) Administrative expenses (27,000) (25.000) Total operating expenses $(71,000) $65,000 Income from operations 5141.000 $220,000 2.300 Other revenue 2.000 Income before income tax 5143,300 $222.000 Income tax expense (13,000) (20,000) 5130,300 5202,000 et income 2. Based on the horizontal analysis prepared in 1 which of the following statements is correct? Net income declined from 2012 to 2013 Sales increased, but the cost of goods also increased causing gross profit to decline Other revenues decreased slightly and income tax expense increased d. Overall net income increased