Formula: Subtract, Divide; Cell Referencing Ch. 4 Cloud 9. Using Excel to Perform Common-Size Analysis on the Income Statement PROBLEM W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and its business environment, determine materiality, and assess inherent risk. This will assist the team in developing an audit strategy and designing the nature, extent, and timing of audit procedures. Comparative income statements for Cloud 9 for the years ending January 31, 2025 and 2024 are presented in the work area. Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the work area as indicated. Conduct a common size analysis of Cloud 9's income statements for 2024 and 2025. Cloud 9 Income Statements Years Ended January 31 2025 2024 Dollar Change Percentage Change Revenues Costs and expenses: Cost of sales Selling and administrative Interest expense Other (income)/expense, net Total costs and expenses Income before income taxes Income taxes Net income $ 364,953,846 $ 345,965,385 1,730,769 222,496,154 104,450,000 207,838,462 100,246,154 1,257,692 1,311,539 796,154 329,515,385 310,611,539 35,438,461 35,353,846 12,757,692 13,080,769 $ 22,680,769 $ 22,273,077