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 Net sales $990,000 $1,069,200 $1,316,700 Less: Cost of goods sold (296,000) (322,000) (365,000) Gross margin $694,000 $747,200 $951,700 Less: Operating expenses (417,000) (494,000) (599,500) Income (111,000) (119,400) (138,400) Net income $166,000 $133,800 $213,800 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 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Percentage Dollars Percentage Net sales $990,000 1,069,200 % $1,316,700 133 % Less: Cost of goods sold (296,000) 30 (322,000) 30 (365,000) 28 Gross margin $694,000 70 $747,200 70 $951,700 72 Less: Operating expenses (417,000) 42 (494,000) 46 (599,500) 46 Income taxes (111,000) 11 (119,400) 11 (138,400) 11 Net income $166,000 16 $133,800 13 $213,800 13Computing the Dividend Yield and the Dividend Payout Ratio The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows. Jeanette Company Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $8,281,989 100.0% Less: Cost of goods sold (5,383,293) 65.0 Gross margin $2,898,696 35.0 Less: Operating expenses (1,323,368) 16.0 Operating income $1,575,328 19.0 Less: Interest expense (50,000) D.6 Income before taxes $1,525,328 18.4 Less: Income taxes (40%)* (610,131) 7.4 Net income $915,197 11.0 * Includes both state and federal taxes. Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,3 Preferred dividends (80,000) Dividends to common stockholders (201,887)Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 20X2 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,352 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2,612,465 Jeanette Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Assets Current assets: Cash $2,875,000 $2,580,000 Marketable securities 800,000 700,000 Accounts receivable (net) 939,776 690,000 Inventories 490,000 260,000 Other 93,000 74,261 Total current assets $5,197,776 $4,304,261 Property and equipment: Land $1,575,000 $1,067,315 Building and equipment (net) 1,348,800 1,150,000Balance, end of period $2,612,465 Jeanette Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Assets Current assets: Cash $2,875,000 $2,580,000 Marketable securities 800,000 700,000 Accounts receivable (net) 939,776 690,000 Inventories 490,000 260,000 Other 93,000 74,261 Total current assets $5,197,776 $4,304,261 Property and equipment: Land $1,575,000 $1,067,315 Building and equipment (net) 1,348,800 1,150,000 Total long-term assets $2,923,800 $2,217,315 Total assets $8,121,576 $6,521,576 Liabilities and Stockholders' Equity Current liabilities: Notes payable, short term $1,170,127 $ 543,641 Accounts payable 298,484 101,500 Current maturity of long-term debt 3,000 2,000 Accrued payables 200,000 57,780 Total current liabilities $1.671.611 $ 704.921 Check My Work 1 more Check My Work uses remaining.Notes payable, short term $1,1?0,12? $ 543,641 Accounts payable 298,484 101,500 Current maturity oflongterm debt 3,000 2,000 Accrued payables 200,000 5?,3-'80 Total current liabilities $1,6?1,611 $ ?04,921 Longterm liabilities: Bonds payable, 10% 500,000 500,000 Total liabilities $2,1?1,611 $1,204,921 Stockholders' equity: Preferred stock, $25 par, 8% $1,000,000 $1,000,000 ) Common stock, $1.50 par 33?,500 33?,500 Additional paidin capital* 2,000,000 2,000,000 Retained earnings 2,612,465 1,9?9,155 Total stockholders' equity $5,949,965 $5,316,655 Total liabilities and stockholders' equity $8,121,526 $6,521,5?6 * For common stock only. Also, assume that the market price per common share is $160. Required: 1. Compute the dividends per share. Round the answer to four decimal places. 2. Compute the dividend yield. Use the part 1 nal answer in these calculations and round the nal answer to two decimal places. i: we 3. Compute the dividend payout ratio. Round the answer to two decimal places. l:l%