The following percentages apply to Thornton 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% 61.0 39.0 26.5 2.5 29.0 10.0 5.5 Year 3 100.0% 64.0 36.0 20.5 2.0 22.5 13.5 7.0 6.5% 4.5% Required Assuming that sales were $800,000 in Year 3 and $960,000 in Year 4, prepare income statements for the two years. THORNTON 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 Income tax expense Net income