Chapter 14 Problems 1. PR.14.018 2. PR.14.018.ALGO 3. PR.14.02B eBook Show Me How Horizontal Analysis of Income Statement For 2012, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative Income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 4. PR. 14.04B Sales Cost of goods sold Progress: 2/4 items Assignment Score: 0.0% Gross profit Selling expenses Administrative expenses Chapter 14 Problems 1. PR.14.018 2. PR.14.018.ALGO 3. PR.14.02B 4. PR. 14.04B eBook Show Me How Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 Increase Increase/ (Decrease) (Decrease) Amount Percent Sales Cost of goods sold $707,186 $636,000 $ (496,000) (400,000) % Gross profit Selling expenses $211,186 $236,000 $ $(70,200) $($4,000) $ % Administrative expenses Total operating expenses (41,340) (34,000) $(111,540) $(88,000) % % Operating income $99,616 $148,000 3,432 % 2,700 % Other revenue Income before income tax expense $103,078 $150,700 $ Income tax expense (28,900) (45,200) % Net Income $74,178 $105,500 % 2. Net income has profit to from 2011 to 2012. Sales have Progress: 2/4 items Assignment Score: 0.0% Check My Work All work saved. ; however, the cost of goods sold has at a faster rate than sales, causing the gross Previous Next Save and Exit Submit Assignment for Grading