Yr. 1yr. 2

Sales$500,000$400,000

COGS330000268000

Gros profit170,000132,000

Oper. Expenses 125000116,000

Net profit$45,000$16,000

a.Construct a 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.)