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: Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Year 1 $5,000,000 (3,000,000) $2,000,000 (1,420,000) (232,000) $348,000 Year 2 $4,500,000 (3,250,000) $1,250,000 (800,000) (180,000) $270,000 Year 3 $4,000,000 (3,600,000) $400,000 (165,000) (134,000) $101,000 Net income 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 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income