Company A reported the following income statement data for the most recent three years:

Prepare a common-size income statement for eachyear.

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Year 3 Year 2 Year 1 Sales Cost of goods sold Operating expenses: $120,000 90,000 $100,000 (55,000 (47000 (48,000) Marketing expense. R&D expense Administrative expense (7.000) (7.000) (6,000) .(15.000) (4.000) 0.000) (22,000)(20,000) 20,000) 22000) 20,000) 23,000 10,000 16,000 Operating income.S Interest expense (000 5.003000 (8,000) (2000) (3,000) Income before income taxes$ 20,000 5,000 $ 13,000 Income tax expense Net income.... (5,000) 12.000 3,000 8.000