PROBLEMS Sales 1. Comparative income statements for 2010 and 2009 follow. Cost of Sales Gross Profit Operating Expenses Operating Income Interest Expense Earnings Before Tax Income Taxes Net Income 2010 2009 $9,434,000 $7,862,000 7,075,400 5,660,640 $2,358,600 $2,201,360 1,367,690 1,365,060 $ 990,910 157,500 $ 836,300 126,000 $ 833,410 400,000 $ 710,300 317,200 $ 433,410 $ 393,100 Required: a. Prepare a vertical common-size analysis of this statement for each year, using sales as the base. b. Comment briefly on the changes between the two years, based on the vertical common-size statement.