PR 17-1B Horizontal analysis of income statement OBJ. 2 For 20Y2, 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 comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Sales................................................................. Costofgoodssold..................................................... Grossprofit........................................................... Sellingexpenses...................................................... Administrativeexpenses............................................... Totaloperatingexpenses .............................................. Incomefromoperations............................................... Otherrevenue........................................................ Incomebeforeincometax ............................................. Incometaxexpense................................................... Netincome........................................................... Instructions 20Y2 $910,000 441,000 $469,000 $ 139,150 99,450 $238,600 $230,400 65,000 $295,400 65,000 $230,400 20Y1 $700,000 350,000 $350,000 $115,000 85,000 $200,000 $150,000 50,000 $200,000 50,000 $150,000 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 re- vealed by the horizontal analysis prepared in (1