PR 17-1A Horizontal analysis of income statement OBJ. 2 ase 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 Sales Cost of goods sold. Gross profit..5.300,000 $5000,000 Selling expenses.... $16,800,000 $15,000,000 1.220,0001 1,000,000 256,950 225,000 Instructions 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. 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1)