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Question No. 1 The following figures were taken from the Income Statements of Silverkoto Inc.. Sales Cost of sales Gross profit Selling and administrative expenses

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Question No. 1 The following figures were taken from the Income Statements of Silverkoto Inc.. Sales Cost of sales Gross profit Selling and administrative expenses Operating income Interest expense Net income before taxes 2019 5,000,000 3,160,000 1,840,000 1,580,000 260,000 70,000 190,000 2018 4,000,000 2,400,000 1,600,000 1,284,000 316,000 40,000 276,000 Required: a. Present the above figures in common-size income statements. b. If you will be consulted as to the possible reason why there was a decrease in Net Income before taxes despite the increase in Sales, how would you explain it

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