The following income statement was prepared by Case Company for Year $2$:

Sales $ $118,000$

Cost of goods sold $70,000$

Gross margin $48,000$

Selling and administrative expense $30,500$

Interest expense $9,500$

Total expenses $40,000$

Income before taxes $8,000$

Income tax expense $2,560$

Net income $ $5,440$

Required:

Perform vertical analysis for Case Company's Year $2$ income statement.