The income statements of Kronau Corp. for the years ended March 31, 2015 through 2017 are shown below:

Required:
a. Prepare common size and trend financial statements for Kronau. (For the trend statements, use 2015 as the base year.)
b. Use the information from (a) to evaluate the performance of Kronau. Explain fully.
Your evaluation should include a comparison of Kronau’s performance from year to year.
c. How does the non-recurring expense affect your ability to evaluate Kronau’s performance and to interpret your common size and trend financialstatements?

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Kronau Corp Income Statements For the Years Ended March 31 2017 2016 2015 Sales Cost of sales Gross margin Selling, general, and administrative expenses Depreciation expense Interest expense Non-recurring expense Income before income taxes Income tax expense Netincome $2,875,000 $2,612,500 S2,425,000 1,280,500 1,144,500 555,500 95,000 130,000 1,575,000 ,375,000 1,300,000 237500 1,1 575,000 105,000 137,500 675,000 129,000 150,000 250,000 96,000 18,000 420,000 80,000 78,000 S 340,000 S 289,000 364,000 75,000