Leslie€™s Burgers operates and franchises fast-food restaurants specializing in grilled hamburgers and chicken sandwiches. The 2012 and 2013 income statements are as follows (in $000s):

Required
a. Prepare a common-size analysis of this section of Leslie€™s Burgers€™ income statement.
Express all percentages using one decimal place. Your answers may not add perfectly due to rounding.
b. One obvious reason that operating income dropped significantly in 2013 is the impairment of long-lived assets. What other operating issues do you believe contributed to the decline in operatingincome?

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Year Ended December 31, 2013 $41,001 December 31, 2012 $40,183 Total revenues Expenses Cost of restaurant sales Restaurant operating expenses General and administrative Advertising Depreciation and amortization Impairment of long-lived assets 1,125 16,898 6,818 2,547 2,206 11,066 16,726 5,280 2,652 20% 986 0 37,820 $2,363 Total expenses 40,580 $ 421 Operating income