Scherer Company provided the following income statements for its first 3 years of operation: Scherer Company Net sales Less: Cost of goods sold Gross margin Income Statements Years of Operation Year 1 Year 2 Year 3 $1,010,000 $1,100,900 $1,363,500 (291,000) (320,000) (365,000) $719,000 $780,900 $998,500 Less: Operating expenses (413,000) (488,000) (586,500) Income taxes (110,400) (120,800) (134,200) Net income $195,600 $172,100 $277,800 Required: Prepare common-size income statements by using Year 1 as the base period. (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.) Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Dollars Percentage Year 2 Dollars Year 2 Percentage Year 3 Dollars Year 3 Percentage Net sales $1,010,000 % 1,100,900 % $1,363,500 % Less: Cost of goods sold (291,000) (320,000) (365,000) Gross margin $719,000 $780,900 $998,500 Less: Operating expenses (413,000) (488,000) (586,500) Income taxes (110,400) (120,800) (134,200) Net income $195,600 $172,100 $277,800