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	$2,000,000		$1,250,000		$400,000
Less: Operating expenses	(1,420,000)		(800,000)		(165,000)
Income taxes	(232,000)		(180,000)		(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.