252Fnewconne Er Three Graded Homework Saved Exercise 3-14A (Algo) Comparing gross margin and gain on sale of land LO 3-6 Lopez Sales Company had the following balances in its accounts on January 1, Year 2 Cash Merchandise Inventory Land Common Stock Retained Earnings $ 56,000 36.000 96,000 76,000 112,000 eBook Hint Lopez experienced the following events during Year 2 1. Sold merchandise inventory that cost $28.800 for $61,200 2. Sold and that cost $38.400 for $72,000. Print References Required a. Determine the amount of gross margin recognized by Lopez b. Determine the amount of the gain on the sale of land recognized by Lopez Gross margin b. Gain on sale of land Problem 3-27A (Algo) Using common size income statements to make comparisons LO 3-8 The following income statements were drawn from the annual reports of Toner Sales Company Net sales Cost of goods sold Gross margin Less Operating expense Selling and administrative expenses Net income Year 2 $426,100 259.921) 166,179 Year 3 $ 521,100 (265,761) 255,339 (46,071) $ 119,308 (57,321) $ 198,018 "All dollar amounts are reported in thousands The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between Year 2 and Year 3. (Round your final answers for percentage values to 1 decimal place. Enter dollar amounts in thousands, not in whole dollars.) ** 10 1 decimal place. TONER SALES COMPANY Income Statement For the Years Ended December 31, Year 2 and Year 3 Year 2 % Year 3