For 20Y2, Macklin Inc. reported a significant increase 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 $910,000 $700,000
Cost of goods sold 441,000 350,000
Gross profit $469,000 $350,000
Selling expenses $139,150 $115,000
Administrative expenses 99,450 85,000
Total operating expenses $238,600 $200,000
Income from operations $230,400 $150,000
Other income 65,000 50,000
Income before income tax $295,400 $200,000
Income tax expense 65,000 50,000
Net income $230,400 $150,000
Required:
Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year.