Refer to the information for Jasmine Company above.

Jasmine Company provided the following income statements for its first 3 years of operation:

Required:
Prepare common-size income statements by using Year 1 as the base period.

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Year 1 Year 2 Year 3 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses $ 5,000,000 $4,500,000 4,000,000 (3,000,000) (3,250,000) (3,600,000) $2,000,000 $1,250,000 400,000 (1.420,000) (800,000) (165,000) (232,000 (180,000) 134,000) Income taxes Net income $ 348,000 270,000101,000