Refer to the information for Sundahl Company below.
Sundahl Company's income statements for the past 2 years are as follows:

Required:
Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1.

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Sundahl Company Income Statements For the Years 1 and 2 Year 2 Sales Less: Cost of goods sold 2,000,000 1.400.000) S 600,000 1,800,000 1.200,000) Gross margin $ 600,000 Less operating expenses: S (300,000) (100,000) $ 200,000 50.000) $ 150,000 (300,000) (110,000) S 190,000 (40,000) Selling expenses Administrative expenses Operating income Less: Interest expense Income before taxes 150,000