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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. ) 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1). Net income has from 20Y1 to 20Y2. Sales have ; however, the cost of goods sold has pace than sales. In addition, total operating expenses have , causing the gross profit to increase at a in costs and expenses that are higher than the increase in sales have caused the net income to 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