Sanborn Corporation's condensed comparative income statement for 2012 and 2011 appear below. The corporation's condensed comparative balance sheets for 2012 and 2011 appear on the next page.

Required
1. Prepare Schedules showing the amount and percentage changes from 2011 to 2012 for the comparative income statements and the balance sheets.
2. Prepare common-size income statements and balance sheets for 2011 and 2012.
3. Comments on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements.

Sanborn Corporation Comparatlve Income Statements For the Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross margin Operating expenses $3,276,800 2,088,800 $1,188,000 $3,146,400 2,008.400 $1,138,000 518,000 423,200 941,200 S 196,800 39,200 157,600 56,800 S 100,800 $2.52 Selling expenses 476,800 447,200 924,000 $ 264,000 65,600 198,400 62,400 136,000 $ 3.40 Administrative expenses Total operating expenses Income from operations Interest expense Income before income taxes Income taxes expense Net income Earnings per share Sanborn Corporation Comparatlve Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Cash Accounts receivable (net) Inventory Property. plant, and equipment (net) Total assets 81,200 40,800 229,200 594,800 720,000 $1,641,600 $1,584,800 235,600 574,800 750,000 Liabilities and Stockholders Equity s 267,600 477,200 400,000 Accounts payable Notes payable (short-term) Bonds payable Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 200,000 400,000 400,000 374,000 $1,641,600 400,000 307,600 $1,584,800