Cuneo Company’s income statements for the last 3 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.
2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue.
3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue.
4. Briefly explain how accountants might utilize data visualization, along with vertical analyses, to help improve decisions involving financial statement items.

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Sales Less: Cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses Operating income Less: Interest expense Income before taxes Cuneo Company Income Statements For the Years 1, 2, and 3 Year 1 $1,000,000 700,000 $ 300,000 150,000 50,000 $ 100,000 25,000 $ 75,000 Year 2 $1,200,000 700,000 $ 500,000 220,000 60,000 $ 220,000 25,000 $ 195,000 Year 3 $ 1,700,000 1,000,000 $ 700,000 250,000 120,000 $ 330,000 25,000 $ 305,000