For 2014, Macklin Inc. reported its most significant increase in net income in years. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2013 as the base year. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in(1).

Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 $936,000 26,000 5910,000 441,000 $469,000 $139,150 99,450 $238,600 $230,400 65,000 $295,400 65,000 $230,400 $720,000 20,000 $700,000 350,000 $350,000 115,000 85,000 $200,000 $150,000 50,000 $200,000 50,000 $150,000 Sales returns and allowances. Gross profit Selling expenses Other income Income before income tax .