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 $1,090,000.00 $1,199,000.00 $1,417,000.00 3 Less: Cost of goods sold 292,000.00 308,000.00 368,000.00 4 Gross margin $798,000.00 $891,000.00 $1,049,000.00 5 Less: Operating expenses 417,000.00 489,000.00 589,500.00 Income taxes 110,000.00 119,400.00 140,600.00 8 Net income $271,000.00 $282,600.00 $318,900.00 Required: Prepare common-size income statements by using net sales as the base. Common-Size Income Statement Prepare common-size income statements by using net sales as the base. (Note: Enter all amounts as positive numbers and round answers to the nearest whole percentage. Percentages may not calculate down. 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 Percentage Dollars Percentage 6 (Label) 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