2. The financial statements for Custom Design, Inc. are shown belo $8,000 ($3,300) $4,700 Custom Design, Inc. Income Statement (5000) Net sales (all credit Cost of goods sold Gross profit Operating expenses (includes $500 depreciation Net operating income Interest expense Earnings before taxes Income taxes (40%) Net income ($3,000 $1,700 (5367) $1,333 ($533) $800 Custom Design, Inc. Balance Sheet (5000) Cash Accounts receivable Inventories Current assets Net fixed assets Total assets $500 $2,000 $1,000 $3,500 $4,500/E $8,000 Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $1,100 $600 $300 $2,000 $2,000 $4,000 $8,000 Required: 3. Using the income statement and balance sheet provided for Fresh Design, Inc.: a) prepare a common-size income statement [4 marks] b) prepare a common-size balance sheet. [6 marks]