Calculator Common Size Income Statements and Horizontal Analysis GO 5.14 ne Income statements for Mariners Corp. for the past two years are as follows: GO 0.00 GO 4 00 30 0.00 SO 4.30 Sales revenue Cost of goods sold Gross pront Selling and administrative expense Operating income Interest expense Income before tax Income tax expense Net Income (amounts in thousands of dollars) 2017 2016 $59,910 $49,500 42,010 30,080 $17,900 $19,520 9,200 4,510 58,700 $15,010 2,230 2,230 $6,470 $12,780 2,490 3,890 $3,980 $8,890 Required: 1. Using the format in Example 13-5, prepare common size comparative income statements for the two years for Mariners Corp. Round percentages to one decimal point Mariners Corp. Common-Size Comparative Income Statements For The Years Ended December 31, 2017 And 2016 (In Thousands of Dollars) 2017 Dollars 2017 Percent 2016 Dollars 2016 Percent Sales revenue 59,910 100 49.000 100 Cost of goods sold 42.010 70.12 X 30,000 Previous ading/previewinwindow.html Calculator ne Mariners Corp. Common-Size Comparative Income Statements For The Years Ended December 31, 2017 And 2016 (In Thousands of Dollars) 2017 Dollars 2017 Percent 2016 Dollars 2016 Percent Sales revenue 59,910 100 $49,600 100 % Cost of goods sold 42,010 70.12 30,080 65 Gross profit Selling and administrative expense 17,900 29.88 X % 19,520 39.35 X% 9.200 15.36 45.10 9.09 Operating Income 8,700 14.52 X % 15,010 30.26 X 96 Interest expense 2,230 3.72X 2,230 4.50 Income before tax 6,470 10.80 % 12,780 25.77 X 9 Income tax expense 2,490 4.16 3,890 7.84 Net income 3,980 6.64 X% 8.890 17.32 X% 2. Based on Mariner's common size statements in 2017 compared to 2016, it can be concluded that a. all of these are true. b. gross profit as a percentage of sales declined due to higher cost of goods sold. c. net income decreased both in dollars and as a percentage of sales. d. selling and administrative expenses increased both in dollars as well as percentage of sales. Previous