London Company provided the following income statements for its first three years of operation:

Year 1Year 2Year 3Net sales975,0001,150,0001,280,000Less: cost of goods sold(676,000)(910,000)(945,000)Gross margin299,000240,000335,000Less:Operating expenses(185,000)(215,000)(235,000)Income taxes(45,600)(10,000)(40,000)Net income68,40015,00060,000Problem 16-4

Refer to Figure 16-6. Prepare a vertical analysis by using net sales as the base.

If required, round to the nearest whole percent.