• 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	$780,000		$625,000
Cost of goods sold	560,000		297,600
Gross profit	220,000		327,400
Operating expenses	130,400		226,400
Net income	$89,600		$101,000

• Reason for Decline in Net Income