Express the following comparative income statements in common-size percents and assess whether or not this company’s situation has improved in the most recent year.

MACHIKO CORPORATION P2 Comparative Income Statements For Years Ended December 31, 2008 and 2007 2008 2007 Sales . . . . . . . . . . . . . . . . . . $740,000 $625,000 Cost of goods sold . . . . . . . . 560,300 290,800 Gross profit . . . . . . . . . . . . . 179,700 334,200 Operating expenses . . . . . . . 128,200 218,500 Net income . . . . . . . . . . . . . $ 51,500 $115,700.AppendixLO1