For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:McDade CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y11 20Y2 20Y12 Sales $16,800,000.00 $15,000,000.003 Cost of goods sold 11,500,000.00 10,000,000.004 Gross profit $5,300,000.00 $5,000,000.005 Selling expenses $1,770,000.00 $1,500,000.006 Administrative expenses 1,220,000.00 1,000,000.007 Total operating expenses $2,990,000.00 $2,500,000.008 Income from operations $2,310,000.00 $2,500,000.009 Other income 256,950.00 225,000.0010 Income before income tax $2,566,950.00 $2,725,000.0011 Income tax expense 1,413,000.00 1,500,000.0012 Net income $1,153,950.00 $1,225,000.001. 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 an amount or percent decrease. If required, 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).