Scherer Company provided the following income statements for its first 3 years of operation: Scherer Company Income Statements Years of Operation 1 Year 1 Year 2 Year 3 2 Net sales $1,090,000.00 $1,155,400.00 $1,406,100.00 3 Less: Cost of goods sold (299,000.00) (308,000.00) (369,000.00) 4 Gross margin $791,000.00 $847,400.00 $1,037,100.00 5 Less: 6 Operating expenses (431,000.00) (488,000.00) (589,500.00) 7 Income taxes (108,800.00) (124,600.00) (135,400.00) 8 Net income $251,200.00 $234,800.00 $312,200.00 Required: Prepare common-size income statements by using Year 1 as the base period.