03 A. Using the Following Information, Prepare Common-size income statement for Year 2 and Year 3 by expressing each line item as a percentage of sales revenue. (Vertical Analysis) Cance Company Income Statements For the Years 1.2 and 3 Year! Year 2 Year 3 Sales $1.000.000 S1.300.000 5 1.700.000 Less Cost of goods sold (700.000) 700.000 (1.000.000) Gross margin 500.000 $ 500.000 $ 700.000 Less operating expenses Selling expenses (150.000) (230.000) (250.000) Administrative expenses 50.000) 100.000) (120.000) $ 100.000 Operating income $ 230.000 $310.000 Less Interest expense (25.000 25.300 (25.000 Income before taxes 75.000 $195.000 55.000