Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Jasmine Company provided the following income statements for its first 3 years of operation: Year 1 Year 2 Year 3 Net sales $5,000,000 $4,500,000 $4,000,000 Less: Cost of goods sold (3,000,000) (3,250,000) (3,600,000) Gross margin $1,250,000 $400,000 Less: Operating expenses $2,000,000 (1,420,000) (232,000) (165,000) (800,000) (180,000) Income taxes (134,000) Net income $348,000 $270,000 $101,000 Required: Prepare common-size income statements by using Year 1 as the base period. Round answers to the nearest whole percentage. Jasmine Company Income Statement Year 1 dollars Year 1 percent Year 2 dollars Year 2 percent Year 3 dollars Year 3 percent Net sales % % % Less: Cost of goods sold Gross margin $ 10101 111100 Less: Operating expenses l1111 Income taxes Net income