Allyson Company provided the following income statements for its first three years of operation:

Required:
Prepare common-size income statements by using year 1 as the base period. Round answers to the nearestpercentage.

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Year 1 $1,000,000 $ 300,000 Year 2 $1,100,000 (700,000 750,000 (810,000) Year 3 $1,250,000 $ 440,000 Net sales Less: Cost of goods sold Gross margin $ 350,000 Operating expenses Income taxes Net income (200,000) (240,000) (40,000) (44,000 (52,000) (310,000) $ 60,000 $ 66,000 $ 78,000