Scherer Company provided the following income statements for its first 3 years of operation: Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 2 Net sales $1,040,000.00 $1,154,400.00 $1,341,600.00 (367,000.00) Less: Cost of goods sold Gross margin (295,000.00) $745,000.00 (309,000.00) $845,400.00 $974,600.00 Instructions Less: Lost or goods sola P07,000.00) (299,000.00) $745,000.00 PUY,000.00) $845,400.00 Gross margin $974,600.00 Less: Operating expenses (586,500.00) Income taxes (429,000.00) (110,200.00) $205,800.00 (488,000.00) (120,600.00) $236,800.00 (139,800.00) $248,300.00 8 Net income Required: Prepare common-size income statements by using Year 1 as the base period. Year 1 Year 1 Year 2 Year 2 Year 3 Dollars Percentage Dollars Percentage 100.0%" 3 Net sales $1,341,600.00 $(1,040,000.00) (295,000.00) Dollars $1.154.400.00 (309,000.00) $845,400.00 Less: Cost of goods sold Gross margin (28.0) 72.0 100.0% (27.0) 73.0 (367,000.00) $974,600.00 $745,000.00 Less: Operating expenses (429,000.00) Income taxes (110.200.00) (41.0) (11.0) 20.0 (488,000.00) (120,600.00) $236,800.00 (42.0) (10.0) 20.0 (586,500.00) (139,800.00) $248,300.00 Net income $205,800.00 Common-Size Income Statement Shaded cells have feedback Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Dollars Percentage Percentage 100.0% 100.0% $1.154.400.00 100.0% $(1.040,000.00) (295,000.00) sold (28.0) 72.0 (27.0) (309,000.00) $845,400.00 $1,341,600.00 (367,000.00) $974,600.00 (27.0) 73.0 $745,000.00 73.0 (429,000.00) (42.0) (586,500.00) (110,200.00) (41.0) (11.0) 20.0 (488,000.00) (120,600.00) $236,800.00 (10.0) (139,800.00) (44.0) (10.0) 19.0 $205,800.00 20.0 $248,300.00