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 "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Increase Increase/ (Decrease) (Decrease) 20Y2 Sales Cost of goods sold 20Y1 $714,130 $655,000 (492,000) (410,000) Amount Percent % % Gross profit $222,130 $245,000 % Selling expenses $(68,750) $(55,000) % Administrative expenses (41,300) (35,000) % Total operating expenses $(110,050) $(90,000) % Operating income $112,080 $155,000 % Other revenue 3,590 2,800 % Income before income tax expense $115,670 $157,800 % Income tax expense (32,400) (47,300) % Net income $83,270 $110,500 %