G Help Save & Exit Subm Check my work Year 2 Year 1 Sales $ 491, 000 $ 396, 000 Cost of goods sold 330, 000 268, 000 Gross profit $ 161, 000 $ 128, 000 03:33:12 Operating expenses 130, 000 116, 000 Net income $ 31, 000 $ 12, 000 eBook References a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required B State whether the changes from year 1 to year 2 are favorable or unfavorable. Sales Gross Profit Mc Graw Hill