Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using McDade Company Comparative Income Statement 20Y2 20Y1 Difference - Amount Difference-Percent Sales $771,350 $693,000 78,350 Cost of goods sold 545,600 440,000 105,600 $225,750 $253,000 27.250 $75,400 $58,000 s 17.400 Gross profit Selling expenses Administrative expenses 44,990 37,0007.990 Total operating expenses $120,390 $95,000 25,390 Income from operations $105,360 $158,000 52.640 725 Income before income tax $108,985 $160,90051.915 30,500 48,300 17800 Other income 3,625 2,900 Income tax expense Net income $78,485 $112,600 34- 2. Net income has decreased from 20Y1 to 20Y2. S ales have increased; however, the cost a All work saved