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Sundahl Companys income statements for the past 2 years are as follows: Sundahl Company Income Statements For the Years 1 and 2 Year 1 Year

Sundahl Companys income statements for the past 2 years are as follows:

Sundahl Company Income Statements For the Years 1 and 2
Year 1 Year 2
Sales $2,000,000.00 $1,800,000.00
Less: Cost of goods sold (1,400,000.00) (1,200,000.00)
Gross margin $600,000.00 $600,000.00
Less operating expenses:
Selling expenses $(300,000.00) $(300,000.00)
Administrative expenses (100,000.00) (110,000.00)
Operating income $200,000.00 $190,000.00
Less:
Interest expense (50,000.00) (40,000.00)
Net income before taxes $150,000.00 $150,000.00

Required:

Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round answers to the nearest tenth of a percent.)

Sundahl Company
Income Statement
For Year 2
Year 2 Amount Percent of Year 1 Amount
Sales
Less: Cost of goods sold
Gross margin
Less operating expenses:
Selling expenses
Administrative expenses
Operating income
Less:
Interest expense
Income before taxes

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