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

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