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. Ifrequired, round percentages to one decimal place.Macklin Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1Increase/ Increase/(Decrease) (Decrease)20Υ220Υ1AmountPercentSales$483,672$408,000 $%Cost of goods sold(358,800) (260,000)%Gross profit$124,872$148,000Selling expenses$(50,150) $(34,000)%Administrative expenses(29,520)(22,000)%Total operating expenses$(79,670) $(56,000)%Operating income$45,202$92,000 $%Other revenue2,1661,700%Income before income tax expense$47,368$93,700 $%Income tax expense(13,300)(28,100)%Net income$34,068$65,600%2. Net income hasfrom 20Y1 to 20Y2. Sales have*; however, the cost of goods sold hasat a faster rate than sales, causing the gross profit to 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 StatementFor the Years Ended December 31, 20Y2 and 20Y120Υ220Y1Sales$483,672$408,000Cost of goods sold(358,800)(260,000)Gross profit$124,872$148,000Selling expenses$(50,150)$(34,000)Administrative expenses(29,520)(22,000)Total operating expenses$(79,670)$(56,000)Operating income$45,202$92,000Other revenue2,1661,700Income before income tax expense$47,368$93,700Income tax expense(13,300)(28,100)Net income$34,068$65,600Required:

Comparative statement is the statement of comparison between the two financials. it is the statement…

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 "In - equired, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 20Υ2 20Υ1 Amount Percent Sales $483,672 $408,000 % Cost of goods sold (358,800) (260,000) Gross profit $124,872 $148,000 Selling expenses $(50,150) $(34,000) Administrative expenses (29,520) (22,000) Total operating expenses $(79,670) $(56,000) Operating income $45,202 $92,000 Other revenue 2,166 1,700 Income before income tax expense $47,368 $93,700 Income tax expense (13,300) (28,100) Net income $34,068 $65,600 20x1 to 20x2 Sales ha ve however the cost of goods sold bas rate tha

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 "In - equired, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 20Υ2 20Υ1 Amount Percent Sales $483,672 $408,000 % Cost of goods sold (358,800) (260,000) Gross profit $124,872 $148,000 Selling expenses $(50,150) $(34,000) Administrative expenses (29,520) (22,000) Total operating expenses $(79,670) $(56,000) Operating income $45,202 $92,000 Other revenue 2,166 1,700 Income before income tax expense $47,368 $93,700 Income tax expense (13,300) (28,100) Net income $34,068 $65,600 20x1 to 20x2 Sales ha ve however the cost of goods sold bas rate tha

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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