Consolidated income statements for Winged Manufacturing follow.

Winged Manufacturing

Consolidated income statements

(In thousands except per share amounts)

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. Explain why net income decreased in 2018 and increased in 2019?

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Three fiscal years ended December 31 2019 2018 2017 Sales $7,086,542 $9,188,748 $7,976,954 Costs and expenses: Cost of goods sold Research and development Selling, general, and administrative Restructuring costs and other $6,844,915 564,303 1,384,111 (126,855) $8,666,474 $ 522,274 (21,988) $ 500,286 190,108 $ 310,178 $5,248,834 664,564 1,632,362 320,856 $7,866,616 $ 110,338 29,321 $ 139,659 53,070 $ 86,589 $3,991,337 602,135 1,637,262 50,000 $6,280,734 $ 805,808 49,634 $ 855,442 325,069 $ 530,373 Operating income Interest and other income, net Income before income taxes Provision for income taxes Net income Eamings per common and common equivalent share Common and common equivalent shares used in the calculations of eamings per share 2$ 2.61 0.73 4.33 118,735 119,125 122,490