1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2041 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, 2012 and 2041 Difference Difference - Amount - Percent 2012 20Y1 Sales $736,930 $655,000 $ % Cost of merchandise sold 516,600 410,000 % % % % % Gross profit $220,330 $245,000 $ Selling expenses $72,880 $55,000 $ Administrative expenses 43,190 35,000 Total operating expenses $116,070 $90,000 $ Income from operations $104,260 $155,000 $ Other revenue 3,422 2,800 Income before income tax expense $107,682 $157,800 $ Income tax expense 30,200 47,300 0% % % % Net income $77,482 $110,500 % however, the cost of 2. Net income has merchandise sold has from 20Y1 to 20Y2. Sales have causing the gross profit to increase decrease