For $20$Y$2,$ 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 $31,20$Y$2$ and $20$Y$1$

Line Item Description $20$Y$220$Y$1$

Sales $$506,290$ $$427,000$

Cost of goods sold $(372,600)(270,000)$

Gross profit $$133,690$ $$157,000$

Selling expenses $$(53,100)$ $$(36,000)$

Administrative expenses $(30,870)(23,000)$

Total operating expenses $$(83,970)$ $$(59,000)$

Operating income $$49,720$ $$98,000$

Other revenue $2,2861,800$

Income before income tax expense $$52,006$ $$99,800$

Income tax expense $(14,600)(29,900)$

Net income $$37,406$ $$69,900$

Required:

Question Content Area

$1.$ Prepare a comparative income statement with horizontal analysis for the two$-$year period, using $20$Y$1$ 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 $31,20$Y$2$ and $20$Y$1$

Line Item Description

$20$Y$2$

$20$Y$1$ Increase$/$

$($Decrease$)$

Amount Increase$/$

$($Decrease$)$

Percent

Sales $$506,290$ $$427,000$ $Sales

Sales

$\%$

Cost of goods sold $(372,600)(270,000)$ Cost of goods sold

Cost of goods sold

$\%$

Gross profit $$133,690$ $$157,000$ $Gross profit

Gross profit

$\%$

Selling expenses $$(53,100)$ $$(36,000)$ $Selling expenses

Selling expenses

$\%$

Administrative expenses $(30,870)(23,000)$ Administrative expenses

Administrative expenses

$\%$

Total operating expenses $$(83,970)$ $$(59,000)$ $Total operating expenses

Total operating expenses

$\%$

Operating income $$49,720$ $$98,000$ $Operating income

Operating income

$\%$

Other revenue $2,2861,800$ Other revenue

Other revenue

$\%$

Income before income tax expense $$52,006$ $$99,800$ $Income before income tax expense

Income before income tax expense

$\%$

Income tax expense $(14,600)(29,900)$ Income tax expense

Income tax expense

$\%$

Net income $$37,406$ $$69,900$ $Net income

Net income

$\%$