The following percentages apply to Gibson 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 Year 4 100.0% 61.2 38.8 26.5 2.6 29.1 9.7 5.5 Year 3 100.0% 64.2 35.8 20.7 2.2 22.9 12.9 6.9 6.0% Net income 4.2% Required Assuming that sales were $505,000 in Year 3 and $595,000 in Year 4, prepare income statements for the two years. GIBSON 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