pels and Amount Descriptions Common-Size Income Statement Instructions Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 2 Net sales $1,000,000.00 (300,000.00) 5 Less: Cost of goods sold 4 Gross margin $1,100,000.00 (510,000.00) $790,000.00 $1,300,000.00 (364,000.00) $936,000.00 $700,000.00 5 Less: Operating expenses (421,000.00) (591,500.00) Income taxes (111,600.00) (484,000.00) (122,400,00) $183,600,00 Net Income (137,800.00) $206,700.00 5167,400.00 Required: Prepare common sito income statements by using Year as the base period Common-Size Income Statement Scherer Company Score: 119/164 Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Percentage Percentage 110.0% Dollars $1,300,000.00 Net sales 100.0% 130.0% Less: Cost of goods sold $1,000,000.00 300,000.00 $700,000.00 $1,100,000.00 310,000.00 $790,000.00 364.000.00 $936,000.00 5 Gross margin 6 Less: Operating expenses 484,000.00 Income taxes 421,000.00 111,500.00 $167,400.00 122,400.00 $183,600.00 591,500.00 137,800.00 $206,700.00 Net Income