Problem 3-27A (Algo) Using common size income statements to make comparisons LO 3-8 The following income statements were drawn from the annual reports of Toner Sales Company Year o Net sales Cost of goods sold Gross sargin Less: Operating expense Selling and administrative expenses Net Income Year 2 5.427,000 (298900) 128, 100 $ 522,000 (313,200) 200,800 (85,400) $ 42,00 (104,400 $ 104,400 "All dollar amounts are reported in thousands The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between Year 2 and Year 3. (Round your final answers for percentage values to 1 decimal place. Enter dollar amounts in thousands, not in whole dollars.) TONER SALES COMPANY Income Statement For the Years Ended December 31, Year 2 and Year 3 Year 2 Year 3 "All dollar amounts are reported in thousands The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between Year 2 and Year 3. (Round your final answers for percentage values to 1 decimal place. Enter dollar amounts in thousands, not in whole dollars.) TONER SALES COMPANY Income Statement For the Years Ended December 31. Year 2 and Year 3 Year 2 Year 3 Not sales $ 427 000 s 522.000 Cost of goods sold (298.900 313.200) Gross margin 128.100 208.800 Operating expenses (85.400) (104.400 Operating income 5 12.700 5 104 400