The following income statements were drawn from the annual reports of Toner Sales Company: Net sales Cost of goods sold Gross margin Less: Operating expensel Selling and administrative expenses Net income "All dollar amounts are reported in thousands. Year 2* $ 426,500 (312,000) 114,500 (50,200) Year 3* $520,600 (369,600) 151,000 (64,800) $ 64,300 $ 86,200 The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between Year 2 and Year 3. (Round your final answers for percentage values to 1 decimal place. Enter dollar amounts in thousands, not in whole dollars.) Answer is not complete. TONER SALES COMPANY Income Statement For the Years Ended December 31, Year 2 and Year 3 Year 2 Year 3 Net sales $426,500 O 22.1% $520,600 O 18.1% Cost of goods sold 312.000 18.5 Gross margin 0 114,500 O 31.9 369,600 151,000 15.6 24.2 Operating expenses Operating income $ 64,300 34.06 ( % $ 86,200 25.4%