Obras Corporation€™s condensed comparative income statements and comparative balance sheets for 2014 and 2013 follow.

Required
1. Prepare schedules showing the amount and percentage changes from 2013 to 2014 for the comparative income statements and the balance sheets. (Round to one decimal place.)
2. Prepare common-size income statements and balance sheets for 2013 and 2014. (Round to one decimal place.)
3. Comment on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of thestatements.

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Obras Corporation Comparative Income Statements For the Years Ended December 31, 2014 and 2013 2014 2013 Net sales Cost of goods sold Gross margin Operating expenses: 3,276,800 2,088,800 $1,188,000 $3,146,400 2,008,400 $1,138,000 518,000 423,200 941,200 196,800 39,200 $ 157,600 56,800 $100,800 $ 2.52 Selling expenses 476,800 447,200 924,000 $264,000 65,600 S 198,400 62,400 S 136,000 S 340 Administrative expenses Total operating expenses Income from operations Interest expense Income before income taxes Income taxes expense Net income Ear nings per share Comparative Balance Sheets December 31, 2014 and 2013 2014 2013 Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Total assets 81,200 235,600 574,800 750,000 $1,641,600 S 40,800 229,200 594,800 720,000 1,584800 Accounts payable Notes payable (short-term) Bonds payable Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity $ 267,600 200,000 400,000 400,000 374,000 $1,641,600 S 477,200 400,000 400,000 307,600 1,584800