Given below are the income statements for Miracle Tool Inc. Perform a vertical analysis (common-size) for both of the income statements (year 2012 and 2011) and comment on the current profitability of the company by comparison to previous year (year 2012 vs. 2011). State possible causes for the decrease or increase in profitability. MIRACLE TOOL INC. COMPARATIVE INCOME STATEMENTS Sales Less: Cost of goods sold Gross margin Depreciation expense Other operating expenses.. Loss on sale of marketable securities.. Net income/(loss)... 2012 2011 $350,000 $500,000 (140,000) (200,000) $210,000 $300,000 (35,000) (34,000) (208,000) (226,000) 0 (1,000) ($34,000) $40,000