The comparative income statements and balance sheets for Clarksville Corporation for the years 2010, 2011, and 2012 are given below.

Required:
1. Prepare common-size income statements and balance sheets for Clarksville for 2010, 2011, and 2012.
2. Summarize any trends you see in Clarksville's numbers from 2010 to2012.

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Clarksville Corporation Comparative Income Statements For the Years Ended December 31 2010 2012 2011 $5,700,000 4,000,000 $1,700,000 $1,120,000 400,000 $1,520,000 $ 180,000 80,000 $ 260,000 80,000 $ 180,000 $6,600,000 4,800,000 $3,800,000 2,520,000 $1,280,000 S 960,000 Net sales, Cost of goods sold. Gross profit on sales Selling expense General expense Total operating expenses S1,800,000 $1,200,000 440,000 $1,640,000 S 160,000 130,000 $ 290,000 400,000 $1,360,000 $ (80,000) 160,000 $ 80,000 Operating income (loss) Other revenue (expense) Income before taxes. Income tax. 85,000 20,000 $ 205,000 $ 60,000 Net income Clarksville Corporation Comparative Balance Sheets December 31, 2012, 2011, and 2010 2012 2011 2010 Assets: $ 855,000 1,275,000 $ 955,500 1,075,000 $ 673,500 925,000 Current assets Land, building, and equipment. $ 100,000 61,500 $1,760,000 $ 100,000 48,000 $ 100,000 60,500 Intangible assets. Other assets Total assets $2,278,000 $2,191,000 Liabilities: $ 410,000 400,000 $ 810,000 $ 501,000 600,000 $1,101,000 $ 130,000 400,000 Current liabilities Long-term liabilities Total liabilities Stockholders' equity: Paid-in capital. Retained earnings. Total stockholders' equity. $ 530,000 S 800,000 290,000 $1,090,000 $2,191,000 $1,100,000 368,000 $1,468,000 $1,000,000 230,000 $1,230,000 Total liabilities and stockholders' equity. $2,278,000 $1,760,000