Scherer Company Income Statements Years of Operation Year 2 Year 1 $1,070,000.00 Year 3 $1,391,000.00 2 Net sales $1,177,000.00 3 Less: Cost of goods sold 290,000.00 313,000.00 355,000.00 4 Gross margin $780,000.00 $864,000.00 $1,036,000.00 5 Less: 423,000.00 Operating expenses 487,000.00 581,500.00 110,200.00 Income taxes 119,400.00 133,800.00 $246,800.00 $257,600.00 $320,700.00 8 Net income Required: Instructions Income Statements Years of Operation 2 Net sales Year 1 $1,070,000.00 290,000.00 Year 2 $1,177,000.00 313,000.00 $864,000.00 Year 3 $1,391,000.00 3 Less: Cost of goods sold 355,000.00 4 Gross margin $780,000.00 $1,036,000.00 5 Less: Operating expenses 423,000.00 Income taxes 487,000.00 119,400.00 581,500.00 133,800.00 110,200.00 1338 8 Net income $246,800.00 $257,600.00 $320,700.00 Required: Prepare common-size income statements by using net sales as the base. or Labels and Amount Descriptions Refer to the list below for the exact wording of an. account title within your income statement. Labels Add Less Amount Descriptions Add contribution margin Cost of goods sold Gross margin Income taxes Less contribution margin Net income Net loss Net sales Labels and Amount Descriptions account title within your income statement Labels Add Less Amount Descriptions Add contribution margin Cost of goods sold Gross margin Income taxes Less contribution margin Net income Net loss Net sales Operating Expenses Common-Size Income Statement Labels and Amount Descriptions Common-Size Income Statement Prepare common size income statements by using net sales as the base (Note Enfer al amounts as positive numbers and round answers to the nearest whole percentage Percentages may not calculate down Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries ) Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 2 Year 3 Year 3 Year 1 Percentage Year 2 Dollars Dollars Percentage Dollars Percentage 6 (Label) Previous Common-Size Income Statement Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 3 Year 3 Year 2 Dollars Dollars Percentage Percentage Dollars Percentage NA (Label)