Sales Cost of goods sold Gross profit Operating expenses Net income Year 2 $ 522,00 330. eae $ 192,00 130,000 $ 62, eae Year 1 $ 392,000 268,000 $ 124,800 116, eae $ 8,eae a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) (Round your percentage value answers to 2 decimal places. i.e. 0.1234 as 12.34%.) Show less Year 1 Sales Cost of goods sold Gross profit Operating expenses Net income Year 2 100 96 68.18 % 96 100 9% 65.53 % 96 96 96 96 96 Required Required B >