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Prepare a comparative income statement with horizontal analysis for the two$-$year period, using $20$ Y $1$ 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.

McDade Company

Comparative Income Statement

For the Years Ended December $31,20$ Y $2$ and $20$ Y $1$

$2.$ To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in $(1).$

Net income has $$ from $20$ Y $1$ to $20$ Y $2.$ Sales have $$ ; however, the cost of goods sold has $,$ causing the gross profit to increase at a $$ pace than sales. In addition, total operating expenses have $$ at a faster rate than sales. $$ in costs and expenses that are higher than the increase in sales have caused the net income to $$

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