Common-Size Financial Statements The comparative income statements and balance sheets for Clarksville Corporation for the years 2007, 2008, and 2009 are given below.

Required:
1. Prepare common-size income statements and balance sheets for Clarksville Corporation for the years 2007, 2008, and 2009.
2. Summarize any trends you see in Clarksville’s numbers from 2007 to 2009.

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Clarksville Corporation Comparative Income Statements For the Years Ended December 31 Net sales ... Cost of goods sold Gross profit on sales Selling expense General expense Total operating expenses Operating income (loss). Other revenue (expense) Income before taxes Income tax Net income $3,800,000 2009 2008 2007 $5,700,000 $6,600,000 4,000,000 4,800,000 $1,700,000 $1,800,000 $1,120,000 $1,200,000 400,000 $1,520,000 $ 180,000 80,000 $ 260,000 80,000 $ 180,000 440,000 $1,640,000 $ 160,000 130,000 $ 290,000 85,000 $ 205,000 2,520,000 $1,280,000 $ 960,000 400,000 $1,360,000 $ (80,000) 160,000 $ 80,000 20,000 $ 60,000