Preparing Income Statements by Using Net Sales as the Base: Vertical Analysislt 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 Less: Cost of goods sold (3,000,000) Gross margin $2,000,000 (3,250,000) $1,250,000 (800,000) (180,000) $4,000,000 (3,600,000) $400,000 (165,000) (134,000) $101,000 Less: Operating expenses (1,420,000) (232,000) Income taxes Net income $348,000 $270,000 Required: Prepare common-size income statements by using net sales as the base. 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 % % %