PINE TREE COMPANY
COMPARATIVE INCOME STATEMENTS
FOR THE YEARS ENDED 12/31/17 AND 12/31/16
	(in $ thousands)
	2017	2016
Sales	1,969	1,718
Less: Cost of Goods Sold	1,091	886
Gross profit	878	832
Less: operating expenses
Wage expense	195	176
Depreciation expense	36	29
Rent expense	46	40
Miscellaneous expense	49	77
Total operating expenses	326	322
Operating income	552	510
Less: interest expense	19	66
Income before tax	533	444
Less: income tax expense	213	178
Net income	320	266
Requirements:
a. Convert the income statement above to common size format. Be sure to
include all appropriate formulas (35 points).