erer Company provided the following income statements for its first 3 years of operation Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 2 Net sales $1,090,000.00 $1,155.400.00 $1,406,100.00 3 Less: Cost of goods sold (299,000.00) (308,000.00) (369,000.00) Gross margin $791,000.00 $847,400.00 $1,037,100.00 5 Less: 6 Operating expenses (431,000.00) (589,500.00) (488,000.00) (124,600.00) 7 Income taxes (108,800.00 (135,400.00) 8 Net income $251,200.00 $234,800.00 $312,200.00 Work Previous Next Income Statements Years of Operation Year 3 2 Net sales 3 Less: Cost of goods sold Year 1 $1,090,000.00 (299,000.00) $791,000.00 Year 2 $1,155,400.00 (308,000.00) $847,400.00 $1,406,100.00 (369,000.00) $1,037,100.00 4 Gross margin 5 Less: Operating expenses (431,000.00) (589,500.00) (488,000.00) (124,600.00) 7 Income taxes (135,400.00) (108,800.00) $251,200.00 8 Net income $234,800.00 $312,200.00 Required: Prepare common-size income statements by using Year 1 as the base period. Previous Next k My Work Insti Labels and Amount Descriptions Sche for its first 3 years of op Refer to the list below for the exact wording of an account title within your income statement. Labels herer Company Add pme Statements ars of Operation Less Amount Descriptions Year 1 Add contribution margin Cost of goods sold $1,090,00 (299,00 $791,00 Gross margin Income taxes Less contribution margin Net income (431,00 Net loss (108,80 $251,20 8 Net income Instt Labels and Amount Descriptions Sche Labels for its first 3 years Add Less Amount Descriptions herer Company Add contribution margin pme Statements Cost of goods sold ars of Operation Gross margin Income taxes Less contribution margin $1,09 Net income 299 Net loss $79 Net sales Operating Expenses (108 $25 8 Net income Tupurny LUMIN1013124 In Statements By Using Base Period Horizontal Analysis Instructions Labels and Amount Descriptions Common-Size Income Statement Common-Size Income Statement Prepare common-size income statements by using. Year 1 as the base period. (Note Enter all amounts as positive numbers, except for a net loss. Enfer net loss as a negative number, if applicable. Round answers to the nearest whole percentage Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Percentage Dollars Percentage 6 (Label) Check My Work All work saved. TIL Dy my de Period Horizontal Analysis Instructions Labels and Amount Descriptions Common-Size Income Statement Common-Size Income Statement Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Percentage Dollars Percentage 6 (Label) Check My Work