Operations for Probe Corporation for 2010 and 2011 are summarized here.

Instructions:
1. Prepare common-size income statements for 2011 and 2010.
2. Comment on Probe€™s profitability in 2011 relative to2010.

2011 2010 Net sales Cost of goods sold Gross profit Selling and general expenses__ Operating income Other expenses Income (loss) before income taxes Income taxes (refund) $280,000 $230,000 110.000 98,000 82000 $120.000 53,000 50,000 $32000 67,000 28,000 40,000 (8,000) 39.000 I6,000 (3,000) Net income (loss) $ (5,000) 23,000