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 percents. (Round your percentage answers to 1 decimal place.)

GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
	Current Year		Prior Year
	$	%	$	%
Sales	$760,000		$665,000
Cost of goods sold	568,100		280,000
Gross profit	191,900		385,000
Operating expenses	129,200		257,600
Net income	$62,700		$127,400