Exercise 14.3 (Algo) Common Size Income Statements (LO14-1) Sales Cost of goods sold Gross profit Operating expenses Net income Required: Year 2 $ 481,000 293,410 $ 187,590 86,580 $ 101,010 Year 1 $ 395,000 252,800 $ 142,200 106,650 $ 35,550 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as 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.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required B Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as 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 Year 2 Year 1 Sales % % Cost of goods sold % % Gross profit % % Operating expenses % % Net income % %