In Horizontal Analysis of Income Statement For 2012, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparati Macklin Inc. Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Required: Sales Cost of goods sold Gross profit Selling expenses 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round to one decimal place. Use the minus sign to indi Macklin Inc. Administrative expenses 20Y2 Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Total operating expenses $910,000 441,000 $469,000 $139,150 99,450 $238,600 $230,400 65,000 $295,400 65,000 $230,400 Check My Work 5 more Check My Work uses remaining 20Y2 20Y1 Difference Amount Difference - Percent $910,000 $700,000 441,000 350,000 $469,000 $350,000 $139,150 $115,000 $ 99,450 85,000 $238,600 $200,000 $ % % % % 20Y1 $700,000 350,000 $350,000 $115,000

85,000 $200,000 $150,000 50,000 $200,000 50,000 $150,000 % www %

2. Net income has 2 from 20Y1 to 20Y2. Net sales have ; however, cost of goods sold, selling, and administrative expenses have at a rate, causin 5 more Check My Work uses remaining