FS Company Comparative Income statement Years Ended December 31, 2018 and 2017 2018 % of sales 2017 % of sales Net sales SRS8,000 S03,000 Cost of goods sold $13.000 509,000 Gross profit 145.000 294,000 Other expenses 244,000 237.000 Income from operations 101.000 57,000 Interest revenue 4,000 Interest expense 24,000 14,000 Income before income taxes 81.000 43,000 Income tax expense 17.000 Net income 48.000 26,000 33 000 1. Perform a vertical analysis of the income statement (FS Company). *Formula: Vertical Analysis % Each income statement items / Revenues (or Net sales) 2. Measure profitability using Rate of Return on Sales. "Formula: Rate of Return on Sales Net income /Net sales 3. Compare 2018 results to 2017. 4. Reconstruct the following Income Statement. Exercise: Income Statement MY Company Income Statement December 11, 2018 (amounts in thousands) Net sales SIO 500 Cost of goods sold (a) Selling expenses 2.361 458 Administrative expenses Interest expenses Other expenses Income before taxes 2.046 Income tax expenses Net income