Prepare a common-size income statement for Dreamscape, Inc. for the year ended December 31, 2020. Evaluate the company's performance against industry average ratios and against last year's results

Key Financial Data Industry Average For the Year Ended December 31, 2019 70.0% 30.0 7.0 Dreamscape, Inc. For the Year Ended December 31, 2019 74.5% 25.5 80 5.1 2.4 15.5 10.0 1.4 8.6 2.4 5.2 Ratio % of Sales) Cost of goods sold Gross profits Selling expense Gen. & admin. expense Depreciation expense Total operating expense Operating profits Interest expense Net profits before taxes Taxes Net profits after taxes 4.9 20 13.9 16.1 1.0 15.1 6,0 9.1 $1,000,000 750,000 $ 250,000 Income Statement, Dreamscape, Inc. For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling Expense Gen. & admin. expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $ 70,000 48,000 20,000 $ 138,000 $ 112,000 $ 20,000 $ 92,000 $ 36,800 $ 55,200