The following percentages apply to Perez Company for Year 3 and Year 4: Year 4 Year 3 Sales 100.0% 100.0% Cost of goods sold Gross margin 61.1 64.1 38.9 35.9 Selling and administrative expense 26.3 20.5 Interest expense Total expenses 2.5 1.8 28.8 22.3 Income before taxes Income tax expense 10.1 13.6 5.5 7.0 Net income 4.6% 6.68 Required Assuming that sales were $505,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. Sales PEREZ COMPANY Income Statements Year 4 Year 3 Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income 0 0 0 0 $ 0 0