Q.2 The Arbor Drugs, Inc. income statement from its 2013annual report is presented below: Required: Prepare vertical common-size Income Statement Use net sales as a base. Consolidated Statement of Income Arbor Drugs, Inc. and Subsidiaries Fiscal years ended July 31 2013 (Dollars in thousands) Net sales 534,966 Costs and expenses Cost of sales (390,896) Selling, general, and administrative (117,337) Provision for third-party settlement and related expenses (16,000) Income from operations 10,733 Interest expenses (1,738) Interest income 961 Income before income taxes 9,956 Provision for income tax 3,047 Net income 6,909