Year 2 Year 1 Sales $ 529, 000 $ 404, 000 Cost of goods sold 330, 000 268 , 000 Gross profit $ 199, 000 $ 136, 000 Operating expenses 130, 000 116, 000 Net income tA 69, 000 $ 20, 000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the the dollar amounts into percentages. For each year, sales will appear as 100 percent and oth 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. 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 converting the dollar amounts into percentages. For each year, sales will appear as 100 percent expressed as a percentage of sales. (Income taxes are not involved as the business is not incor percentage value answers to 2 decimal places. i.e. 0.1234 as 12.34%.) Year 2 Year 1 Sales 100 % 100 % Cost of aoods sold % %