Company A reported the following income statement data for the most recent three years:
|
|
Year 3
|
Year 2
|
Year 1
|
|
Sales
|
$120,000
|
$90,000
|
$100,000
|
|
Cost of goods sold
|
(55,000)
|
(47,000)
|
(48,000)
|
|
Operating expenses:
|
|
|
|
|
Marketing expense
|
(7,000)
|
(7,000)
|
(6,000)
|
|
R&D expense
|
(15,000)
|
(4,000)
|
(10,000)
|
|
Administrative expense
|
(20,000)
|
(22,000)
|
(20,000)
|
|
Operating income
|
$ 23,000
|
$10,000
|
$ 16,000
|
|
Interest expense
|
(3,000)
|
(5,000)
|
(3,000)
|
|
Income before income taxes
|
$ 20,000
|
$ 5,000
|
$ 13,000
|
|
Income tax expense
|
(8,000)
|
(2,000)
|
(5,000)
|
|
Net income
|
$ 12,000
|
$ 3,000
|
$ 8,000
|
Prepare a common-size income statement for each year.