Refer to the information for Cuneo Company on the previous page.
Information For Cuneo Company
Cuneo Company's income statements for the last three years are as follows:

Required:
1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)

Transcribed Image Text:

Cuneo Company Income Statements For the Years 1, 2, and 3 ear Year 2 Year 3 Sales Less: Cost of goods sold $1,000,000 $1,200,000 1,700,000 700,000 (250,000 0,000 1,000 Gross margin Less operating expenses Selling expenses Administrative expenses (150,000] 220,000 0,000 120 Operating income Less: Interest expense 100,000 25 305,000 25 25,000 195,000 Income before taxes