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Horizontal analysis of income statement For 2017, McDade Company reported a decine in net income. At the end of the year. T. Burrows, the president, is presented win ene foliowing condensed comparative income statement McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 2011 Sales $ 16,800,000 $ 15,000,000 Cost of goods sold (11,500,000) (10,000,000) Gross profit $5,300,000 $5,000,000 Seling expenses $(1,770,000) 5 (1.500,000) Administrative expenses (1,220,000) (1,000,000) Total operating expenses $12,990,000) (2.500,000) Operating income $2,310,000 12.500,000 Other revenue 256,950 225,000 Income before income tax expense $2.566,950 $ 2,725,000 Income tax expense (1,413,000) (1.500,000) Net Income $ 1,153,050 $1,225,000 1. Prepare a comparative Income statement with hertton analysis for the two year period, using 201 as the base ear Round percentages te one dei for those beves in which you must enter subtracted or negative numbers a minus vign McDade Company Comparative Income Statement For the Years Ended December 31, 2012 and 2001 Increase/(Decrease) 2012 2011 Amount Percent 1. Prepare a comparative Income statement with horizontal analysis for the two-year period, using 2071 as the base year. Round percentages to one decimal lace 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, 2012 and 2041 Increase/(Decrease) 2012 2011 Amount Percent Sales Cost of goods sold Gross profit Seiling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense 10 Income tax expense Net Income causing the 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1) Net income has declined from 2011 to 2042 Sales have increased however, the cost of goods sold has increased profit to increase at a shower pace than sales. In addition total operating expenses have increased after rate than a Previous Next Check My Work

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