For 20Y2, Macklin Inc. reported a significant decrease 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 | |||
| 20Y2 | 20Y1 | ||
| Sales | $867,160 | $731,000 | |
| Cost of goods sold | (634,800) | (460,000) | |
| Gross profit | $232,360 | $271,000 | |
| Selling expenses | $(91,450) | $(62,000) | |
| Administrative expenses | (52,340) | (39,000) | |
| Total operating expenses | $(143,790) | $(101,000) | |
| Operating income | $88,570 | $170,000 | |
| Other revenue | 3,906 | 3,100 | |
| Income before income tax expense | $92,476 | $173,100 | |
| Income tax expense | (25,900) | (51,900) | |
| Net income | $66,576 | $121,200 | |
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.
