Azita 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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Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income Year 1 $ 10,000,000 6,000,000 $ 4,000,000 2,200,000 720,000 $ 1,080,000 Year 2 $ 8,000,000 5,500,000 $ 2,500,000 1,300,000 480,000 $ 720,000 Year 3 $ 6,500,000 5,000,000 $1,500,000 450,000 420,000 $ 630,000