Prepare a comparative common-size income statement for Wolf Corporation. To an investor, how does 2017 compare with 2016? Explain your reasoning.

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Wolf Corporation Income Statement For the Years Ended December 31, 2017 and 2016 (amounts in thousands) 2017 2016 400,000 195,000 205,000 90,000 115,000 3,125 111,875 11,875 100,000 458,800 S 209,820 248,980 $ 95,670 153,310 $ 4,250 149,060 S 16,420 6 Sales revenues Less: Cost of goods sold Gross profit 9 Less: Operating expenses 10 Operating income 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 132,640 $ 15