The following income statements were drawn from the annual reports of Harper Sales Company.

	2014*			2015*
Net sales	$	426,800		$	521,800
Cost of goods sold		(290,224	)		(302,644	)
Gross margin		136,576			219,156
Less: Operating expense
Selling and administrative expenses		(76,824	)		(93,924	)
Net Income	$	59,752		$	125,232

*All dollar amounts are reported in thousands.

The presidents message in the companys 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 2014 and 2015. (Round your percentage answers to the nearest whole percent (i.e., 0.123 should be considered as 12%.))

HARPER SALES COMPANY Income Statement For the Years Ended December 31, 2014 and 2015 2014 2015 Net sales Cost of goods sold Gross margin Operating expenses Operating income Net income