The following percentages apply to Benson Company for Year 3 and Year 4. Sales Year 4 100.0% Year 3 100.0% Cost of goods sold 61.1 63.8 Gross margin 38.9 36.2 Selling and administrative expense 26.3 20.5 Interest expense 2.5 2.2 Total expenses 28.8 22.7 Income before taxes 10.1 13.5 Income tax expense 5.5 7.0 4.6% 6.5% Net income Required Assuming that sales were $515,000 in Year 3 and $590,000 in Year 4, prepare income statements for the two years. BENSON COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Year 4 Year 3 $ 590,000 $ 515,000 590,000 515,000