The following income statements were provided by Chisholm Company, a wholesale food distributor:

                                                                        2012                          2011

Sales .....................................................$1,700,000 ............$1,500,000

Cost of sales..............................................$ 612,000...............$ 450,000

Sales salaries................................................427,000..................398,000

Delivery expense...........................................180,000..................175,000

Office supplies...............................................55,000....................54,000

Depreciation-truck.........................................40,000....................40,000

Total expenses................................................23,000....................20,000

Net income...............................................$ 1,337,00..............$1,137,000

363000 363000

Required

1. Identify each income statement as either single- or multiple-step format.

2. Restate each item in the income statements as a percentage of sales. Why did net income remain unchanged when sales increased in 2012?