Wiglaf Company reported its most significant decline in net income in years. At the end of the year, C.S. Lewis, the president, is presented with the following condensed comparative income statement: Wiglaf Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Sales $437,000 $380,000 Sales returns and allowances 23,370 19,000 Net sales $413,630 $361,000 Cost of goods sold 299,000 230,000 Gross profit $114,630 $131,000 Selling expenses $41,250 $30,000 Administrative expenses 24,130 19,000 Total operating expenses $65,380 $49,000 Income from operations $49,250 $82,000 Other income 1,845 1,500 Income before income tax $51,095 $83,500 Income tax expense 14,300 25,100 Net income $36,795 $58,400 Instructions:

1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2011 as the base year. Use the minus sign to indicate a decrease in the "Difference " columns. If required, round to one decimal place. Wiglaf Company Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 Difference - Amount Difference - Percent Sales $ 437,000 $ 380,000 $ % Sales returns and allowances 23,370 19,000 Net sales $ 413,630 $ 361,000 $ Cost of goods sold 299,000 230,000 Gross profit $ 114,630 $ 131,000 $ Selling expenses $ 41,250 $ 30,000 $ Administrative expenses 24,130 19,000 Total operating expenses $ 65,380 $ 49,000 $ Income from operations $ 49,250 $ 82,000 $ Other income 1,845 1,500 Income before income tax $ 51,095 $ 83,500 $ Income tax expense 14,300 25,100 Net income $ 36,795 $ 58,400 $ % Accounting