Prepare a comparative common-size income statement for McCormick Corporation. To an investor, how does 2017 compare with 2016? Explain your reasoning. (Click the icon to view the comparative income statement.) Start by calculating the percentages. (Round the percentages to two decimal places, X.XX.) McCormick Corporation Comparative Common-Size Income Statement For the Years Ended December 31, 2017 and 2016 2017 2016 Sales revenues 100.00 % 100.00 % Less: Cost of goods sold % % Gross profit % % Less: Operating expenses % % Operating income % % Less: Interest expense % % Income before income taxes % % Less: Income tax expense % % Net income % % Now you are ready to compare the two years. An investor would be the two largest expenses - consumed with 2017 in comparison with 2016. Net sales and net income are both percentages of total revenues in 2017, and net income represents a significantly from 2016. Cost of goods sold and selling and general expenses - percentage of revenues. Overall, profits are McCormick Corporation Income Statement For the Years Ended December 31, 2017 and 2016 (amounts in thousands) 2017 2016 Sales revenues $ 507,990 $ 442,500 234,900 217,500 Less: Cost of goods sold Gross profit Less: Operating expenses Operating income EA $ 273,090 $ 225,000 127,010 120,010 146,080 $ 104,990 Less: Interest expense 15,240 13,010 Income before income taxes $ 130,840 $ 91,980 Less: Income tax expense 19,205 11,995 $ 111,635 $ 79,985 Net income