Sundahl Company’s income statements for the past 2 years are as follows:

Sundahl Company

Income Statements

For the Years 1 and 2

1		Year 1	Year 2
2	Sales	$2,004,000.00	$1,802,000.00
3	Less: Cost of goods sold	(1,402,000.00)	(1,200,000.00)
4	Gross margin	$602,000.00	$602,000.00
5	Less operating expenses:
6	Selling expenses	$(292,000.00)	$(292,000.00)
7	Administrative expenses	(110,800.00)	(119,700.00)
8	Operating income	$199,200.00	$190,300.00
9	Less:
10	Interest expense	(49,200.00)	(40,300.00)
11	Income before taxes	$150,000.00	$150,000.00

	Required:
1.	Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
2.	Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)