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	$960,000	$1,017,600	$1,228,800
Less: Cost of goods sold	(290,000)	(318,000)	(357,000)
Gross margin	$670,000	$699,600	$871,800
Less:
Operating expenses	(411,000)	(491,000)	(599,500)
Income taxes	(110,600)	(121,800)	(135,600)
Net income	$148,400	$86,800	$136,700

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	$960,000		1,017,600		$1,228,800
Less: Cost of goods sold	(290,000)		(318,000)		(357,000)
Gross margin	$670,000		$699,600		$871,800
Less:
Operating expenses	(411,000)		(491,000)		(599,500)
Income taxes	(110,600)		(121,800)		(135,600)
Net income	$148,400		$86,800		$136,700