# Macklin Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 2OY120Υ220Υ1Sales ....\$910,000\$700,000Cost of goods sold..Gross profit ...441,000350,000\$469,000\$350,000\$ 139,150Selling expensesAdministrative expenses..Total operating expensesIncome from operations ..\$115,00085,00099,450\$238,600\$200,000\$230,400\$150,000Other revenue50,00065,000Income before income tax\$295,400\$200,000Income tax expense .65,00050,000\$230,400\$150,000Net income ...

Question
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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:

Please see  the attachment for details:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).

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Step 1

1. Prepare a comparative income statement with horizontal analysis for the two years period using 20X1 as base year as shown below:

Step 2

Calculation formulas:...

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