The following percentages apply to Franklin Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income Year 4 100.0% 60.9 39.1 26.4 2.3 28.7 10.4 5.5 4.9% Year 3 100.0% 64.2 35.8 20.5 2.2 22.7 13.1 7.1 6.0% Required Assuming that sales were $505,000 in Year 3 and $595,000 in Year 4, prepare income statements for the two years. FRANKLIN COMPANY Income Statements Year 4 Year 3 Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes 0 Income tax expense Net income $ 0 $ 0