The consolidated 2011, 2010, and 2009 income statements for Corcoran Inc. and Subsidiaries follow.

Required:
1. Prepare common size income statements for horizontal analysis (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
2. Indicate what Corcoran€™s 2011, 2010, and 2009 tax rates were on its income before taxes (in percentage terms, rounded to two decimal places).
3. Explain why net income increased by a larger percentage than sales in 2011 and 2010.

Corcoran Inc. and Subsidiaries Consolidated Income Statements In millions except per share amounts) December 31, 2010 $ 25,020.7 $21,970.0 $19,292.2 (11,946. (10,611.7 9,366.2] 2011 2009 Net sales Costs and expenses: Cost of goods sold Selling, general, and administrative expenses [9,864.4) [8,721.2) (7,605.9] (208.3) Amortization of intangible assets Operating profit Interest expense Interest income Income before income taxes Provision for income faxes Net income 303.7) 88.7 834.6 265.9) 2,906.5 2,371.2 2,111.8 I572.7 586.1) 113.7 (613.71 161.6 2,422.5 1,898.8 1,659.7 597.1 597.5 $1,587.9 51,301.7 1,062.2