PLEASE ANSWER BOTH QUESTIONS!!!

Horizontal Analysis of Income Statement For 2012, 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 $739,938 $636,000 Cost of goods sold 536,000 400,000 Gross profit $203,938 $236,000 Selling expenses $54,000 $76,950 44,400 34,000 $121,350 Administrative expenses Total operating expenses Income from operations Other income $82,588 $88,000 $148,000 2,700 3,491 Income before income tax $86,079 $150,700 Income tax expense 24,100 45,200 Net income $61,979 $105,500 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 2042 2041 Difference - Amount Difference - Percent $739,938 $636,000 $ 536,000 400,000 Sales Cost of goods sold Gross profit $203,938 $236,000 $ Selling expenses $76,950 $54,000 Administrative expenses 44,400 34,000 Total operating expenses $121,350 $88,000 $148,000 $ 2,700 Income from operations $82,588 Other income 3,491 Income before income tax $86,079 Income tax expense 24,100 $150,700 $ 45,200 Net income $61,979 $105,500 $ 2. Net income has from 20Y1 to 2012. Sales have ; however, the cost of goods sold has , causing the gross profit to