Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 Net sales $1,010,000 $1,111,000 $1,313,000 Less: Cost of goods sold (302,000) (324,000) (359,000) Gross margin $708,000 $787,000 $954,000 Less: Operating expenses Income taxes Net income $177,000 (422,000) (486,000) (597,500) (109,000) (124,200) (135,000) $176,800 $221,500 Required: Prepare common-size income statements by using net sales as the base. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage. Percentages may not calculate down.) Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Dollars Percentage Year 2 Dollars Percentage Year 2 Year 3 Dollars Year 3 Percentage Net sales $1,010,000 % 1,111,000 % $1,313,000 % Less: Cost of goods sold (302,000) (324,000) (359,000) Gross margin $708,000 $787,000 $954,000 Less: Operating expenses (422,000) (486,000) (597,500) Income taxes (109,000) (124,200) (135,000) Net income $177,000 % $176,800 % $221,500 %