Obras Corporation's condensed comparative income statements and comparative balance sheets for 2014 and 2013 follow. Obras Corporation Comparative Income Statements For the Years Ended December 31, 2014 and 2013 2014 2013 Net sales $3,276,800 $3,146,400 Cost of goods sold 2,088,800 2,008,400 Gross margin $1,188,000 $1,138,000 Operating expenses: Selling expenses $ 476,800 $ 518,000 Administrative expenses 447,200 423,200 Total operating expenses $ 924,000 $ 941,200 Income from operations $ 264,000 $ 196,800 Interest expense 65,600 39,200 Income before income taxes $ 198,400 $ 157,600 Income taxes expense 62,400 56,800 Net income $ 136,000 $ 100,800 Earnings per share $ 3.40 $ 2.52 Assets Cash $ 81,200 $ 40,800 Accounts receivable (net) 235,600 229,200 Inventory 574,800 594,800 Property, plant, and equipment (net) 750,000 720,000 Total assets $1,641,600 $1,584,800 Liabilities and Stockholders' Equity Accounts payable $ 267,600 $ 477,200 Notes payable (short-term) 200,000 400,000 Bonds payable 400,000 Common stock, $10 par value 400,000 400,000 Retained earnings 374,000 307,600 Total liabilities and stockholders'equity $1,641,600 $1,584,800 REQUIRED 1. Prepare schedules showing the amount and percentage changes from 2013 to 2014 for the comparative income statements and the balance sheets. (Round to one decimal place.) 2. Prepare common-size income statements and balance sheets for 2013 and 2014. (Round to one decimal place.) 3. Comment on the results in requirements 1 and 2 by identifying favorable and unfavorable changes in the components and composition of the statements