2019 100.0% 60.9 2018 100.0% 64.1 35.9 20.4 Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income 1.9 22.3 6. 7% Required Assuming that sales were $515,000 in 2018 and $595,000 in 2019, prepare income statements for the two years. 2018 VERNON COMPANY Income Statements 2019 Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income $ 0 $ 0