Solomon Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Solomon Corporations income statement components between the two years

SOLOMON CORPORATION
Income Statements
	Year 3	Year 2	Percentage Change
Sales	$1,299,000	$1,002,500		%
Cost of goods sold	798,885	601,500
Gross margin	500,115	401,000
Operating expenses	303,000	200,000
Income before taxes	197,115	201,000
Income taxes	61,700	52,500
Net income (loss)	$135,415	$148,500		%