a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place. Cascade Images, Inc. Comparative Income Statement For the Years Ended December 31, 20Y5 and 20Y4 20Y5 Amount 20Y4 Amount Incr (Decr) Incr (Decr) Amount Percent Sales $423,500 $350,000 $ % Cost of goods sold (372,000) (300,000) % Gross profit $51,500 $50,000 % 0 Selling expenses $(14,430) $(13,000) Administrative expenses (13,090) (11,000) % % 0 Total operating expenses $(27,520) $(24,000) % Income before income tax $23,980 $26,000 $ % Income tax expense (9,600) (10,400) % Net income $14,380 $15,600 % b. All of the following statements regarding Cascade Images, Inc. are true except