For 20Y2, 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, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$841,191		$741,000
Cost of goods sold	(601,600)		(470,000)
Gross profit	$239,591		$271,000
Selling expenses	$(83,700)		$(62,000)
Administrative expenses	(48,830)		(39,000)
Total operating expenses	$(132,530)		$(101,000)
Operating income	$107,061		$170,000
Other revenue	3,816		3,100
Income before income tax expense	$110,877		$173,100
Income tax expense	(31,000)		(51,900)
Net income	$79,877		$121,200

Required:

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1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 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

	20Y2	20Y1	Increase/ (Decrease) Amount	Increase/ (Decrease) Percent
Sales	$841,191	$741,000	$fill in the blank 6cc6d6083fc4fc9_1	fill in the blank 6cc6d6083fc4fc9_2%
Cost of goods sold	(601,600)	(470,000)	fill in the blank 6cc6d6083fc4fc9_3	fill in the blank 6cc6d6083fc4fc9_4%
Gross profit	$239,591	$271,000	$fill in the blank 6cc6d6083fc4fc9_5	fill in the blank 6cc6d6083fc4fc9_6%
Selling expenses	$(83,700)	$(62,000)	$fill in the blank 6cc6d6083fc4fc9_7	fill in the blank 6cc6d6083fc4fc9_8%
Administrative expenses	(48,830)	(39,000)	fill in the blank 6cc6d6083fc4fc9_9	fill in the blank 6cc6d6083fc4fc9_10%
Total operating expenses	$(132,530)	$(101,000)	$fill in the blank 6cc6d6083fc4fc9_11	fill in the blank 6cc6d6083fc4fc9_12%
Operating income	$107,061	$170,000	$fill in the blank 6cc6d6083fc4fc9_13	fill in the blank 6cc6d6083fc4fc9_14%
Other revenue	3,816	3,100	fill in the blank 6cc6d6083fc4fc9_15	fill in the blank 6cc6d6083fc4fc9_16%
Income before income tax expense	$110,877	$173,100	$fill in the blank 6cc6d6083fc4fc9_17	fill in the blank 6cc6d6083fc4fc9_18%
Income tax expense	(31,000)	(51,900)	fill in the blank 6cc6d6083fc4fc9_19	fill in the blank 6cc6d6083fc4fc9_20%
Net income	$79,877	$121,200	$fill in the blank 6cc6d6083fc4fc9_21	fill in the blank 6cc6d6083fc4fc9_22%

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2. Net income has

increased/decreased

from 20Y1 to 20Y2. Sales have

increased/decreased

; however, the cost of goods sold has

increased/decreased

at a faster rate than sales, causing the gross profit to

increased/decrease

.