Horizontal Analysis of Income Statement 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 $16,800,000 $15,000,000 Cost of goods sold 11,500,000 10,000,000 Gross profit $5,300,000 $5,000,000 Selling expenses $1,770,000 $1,500,000 Administrative expenses 1,220,000 1,000,000 Total operating expenses $2,990,000 $2,500,000 Income from operations $2,310,000 $2,500,000 Other revenue 256,950 225,000 Income before income tax $2,566,950 $2,725,000 Income tax expense 1,413,000 1,500,000 Net income $1,153,950 $1,225,000 Required: 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. Use the minus sign to indicate a decrease in the "Difference" columns. McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Increase (Decrease) - Amount Increase (Decrease) - Percent Sales $16,800,000 $15,000,000 $ % Cost of goods sold 11,500,000 10,000,000 % Gross profit $5,300,000 $5,000,000 $ % Selling expenses 1,770,000 1,500,000 % Administrative expenses 1,220,000 1,000,000 % Total operating expenses $2,990,000 $2,500,000 $ % Income from operations $2,310,000 $2,500,000 $ % Other revenue 256,950 225,000 % Income before income tax $2,566,950 $2,725,000 $ % Income tax expense 1,413,000 1,500,000 % Net income $1,153,950 $1,225,000 $Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year.