Common-Size Income Statement Comparative income statements for King Engineering Company for 2009 and 2008 are given below.

1. Prepare common-size income statements for King Engineering Company for 2009 and 2008.
2. Return on sales for King Engineering is lower in 2009 than in 2008. What expense or expenses are causing this lower profitability?

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2009 2008 Sales... Cost of goods sold Gross profit on sales Selling and general expenses Operating income Interest expense Income before income tax Income tax expense Net income... $ 885,000 (570,000) $315,000 (106,000) $209,000 (35,000) $ 174,000 (52,000) $ 122,000 $545,000 (305,000) $ 240,000 (84,000) $ 156,000 (20,000) $136,000 (41,000) $ 95,000