Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income?

• Income Statement
• Reason for Decline in Net Income

Express the following comparative income statements in common-size percentages.

Note: Round your percentage answers to 1 decimal place.

GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
	Current Year $	Current Year %	Prior Year $	Prior Year %
Sales	$785,000		$640,000
Cost of goods sold	568,100		282,200
Gross profit	216,900		357,800
Operating expenses	129,200		232,400
Net income	$87,700		$125,400