Operations for Probe Corporation for 2012 and 2013 are summarized here.

Instructions:
1. Prepare common-size income statements for 2013 and 2012.
2. Comment on Probe's profitability in 2013 relative to 2012.

2013 2012 Net sales.... Cost of goods sold - Gross profit .. Selling and general expenses Operating income Other expenses $280,000 $230,000 110,000 82,000 120,000 53,000 .. .$ 32,000 67,000 28,000 $ (8,000) 39,000 16,000 $ (5.000) 23,000 198,000 . . _. . 50,000 40,000 Income taxes (refund) . (3,000) Net income (loss) .