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: question not attempted. mcdade companycomparative income statementfor the years ended december 31, 20y2 and 20y1120y220y12sales$16,800,000.00$1 5,000,000.003cost of goods sold11,500,000.0010,000,000.004gros s profit$5,300,000.00$5,000,000.005se lling expenses$1,770,000.00$1,500,000.006 administrative expenses1,220,000.001,000,000.007to tal operating expenses$2,990,000.00$2,500,000.008 income from operations$2,310,000.00$2,500,000.0 09other income256,950.00225,000.0010income before income tax$2,566,950.00$2,725,000.0011inco me tax expense1,413,000.001,500,000.0012ne t 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).