2. Exercise 14.3 Common Size Income Statements (LO14-1) 2015 2014 Sales $ 493,000 $ 418,000 Cost of goods sold 330,000 268,000 Gross profit $ 163,000 $ 150,000 Operating expenses 130,000 116,000 Net income $ 33,000 $ 34,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) (Round your percentage value answers to 2 decimal places. i.e. 0.1234 as 12.34%.) b. State whether the changes from 2014 to 2015 are favorable or unfavorable.