2 Common-Size Statements Here is the most recent income statement for Philippe. Prepare a common-size income statement based on this information. How do you inter-pret the standardized net income? What percentage of sales goes to cost of goods sold?

PHILIPPE CORPORATION 2018 Income Statement ($ in millions) Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends $47 Addition to retained earnings 99 $4,053 2,816 550 $ 687 502 $ 185 39 $ 146