2. Common-Size Statements Below is the most recent income statement for Philippe. Prepare a common-size income statement based on this information. How do you interpret the standardized net income? What percentage of sales goes to cost of goods sold? PHILIPPE CORPORATION 2002 Income Statement ($ in millions) Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (34%) Net income Dividends $4,053 2,780 550 $ 723 502 $ 221 75 $ 146 $47