Refer to the information for Scherer Company below.

Information for Scherer Company

Scherer Company provided the following income statements for its first three years of operation

Required:
Prepare common-size income statements by using Year 1 as the base period.

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Year Year 2 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses $1,000,000 1,100,000 50,0 $1,300,000 790,000) $ 510,000 338,000] 400,000 (204,000 8,400 600 240,000 84,0 Income taxes 68,8 Net income 103,200