(L. OBJ. 3) Preparing common-size income statements [10—15 min] Consider the data prese...

(L. OBJ. 3) Preparing common-size income statements [10—15 min]

Consider the data presented in Exercise 14-13.

Requirements

1. Prepare a comparative common-size income statement for Verifine Designs, Inc., using the 2011 and 2010 data. Round percentages to one-tenth percent (three decimal places).

2. To an investor, how does 2011 compare with 2010? Explain your reasoning.