' Required information Prepare an income statement for Year 1, Year 2, and Year 3. Note: Round your intermediate calculations to 2 decimal places. O'Brien Company Absorption Costing Income Statement Year 1 Year 2 Year 3 $ $ Sales $ 5,548,000 6,205,000 5,840,000 Cost of goods sold Gross margin 4,180,000 1,368,000 4,753,810 x 4,431,800 1,451,190 1,408,200 Selling and administrative expenses $ 332,000 $ 350,000 $ 340,000 $ S Net operating income $ 1,036,000 1,101,190 1,068,200