Graterford industries had the following income statement shown below. WWWWWW Sales Cost of Goods Sold Gross Profit Operating Expenses Operating Income Income Taxes Net Income 2014 $20,000,000 12.000,00 8,000,000 6,500,000 1,500,000 800.000 700,000 Industry Average 100% 57% 43% 36% 7% 3% 4% Prepare a common size income statement for Graterford Inc and evaluate each percentage to see if it is favorable or unfavorable compared to the industry average. Problem 2 Thompson Corporation had the following elements from their income statements in 2010 and 2011 2011 2012 % change from 2011 to 2012 Sales $120,000 $100,000 Cost of Goods Sold 80,000 70.000 30,000 Gross profit 40,000 25.000 Problem 2 Thompson Corporation had the following elements from their income statements in 2010 and 2011 2011 2012 % change from 2011 to 2012 Sales $120,000 $100,000 Cost of Goods Sold 80,000 70,000 Gross profit 40,000 30,000 Expenses 25,000 20,000 Net Income 15,000 10,000 Compute the percentage change in each area from 2010 to 2011