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 $	Current Year %	Prior Year $	Prior Year %
Sales	$770,000		$645,000
Cost of goods sold	565,400		297,600
Gross profit	204,600		347,400
Operating expenses	130,400		234,800
Net income	$74,200		$112,600

Using the common-size percents, which item is most responsible for the decline in net income?

	Using the common-size percents, which item is most responsible for the decline in net income?