Instructions Scherer Company provided the following income statements for its first 3 years of operation Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 2 Net sales 3 Less: Cost of goods sold 4 Gross margin 5 Less: 6 Operating expenses 7Income taxes 8 Net income 1,000,000.00 $1,070,000.00 $1,320,000.00 294,000.00) 322,000.00 (368,000.00) $706,000.00 $748,000.00 $952,000.00 (425,000.00) (110,800.00) $170,200.00 (487,000.00) (123,200.00) $137,800.00 (587,500.00) (136,000.00) $228,500.00 Required Prepare common-size income statements by using Year1 as the base period. Labels and Amount Descriptions Refer to the list below for the exact wording of an account title within your income statement. Labels Add Less Amount Descriptions Add contribution margin Cost of goods sold Gross margin Income taxes Less contribution margin Net income Net loss Net sales Operating Expenses Common-Size Income Statement Prepare common-size income statements by using Year 1 as the base period. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Dollars Percentage Percentage 6 (Label)