Example:Common-Size Income Statement Net sales $710.00 100.0% Cost of goods sold $480.00 67.6% Depreciation $30.00 4.2% Earnings before interest and $200.00 28.2% taxes(EBIT) Interest $20.00 2.8% Taxable income $180.00 25.4% Taxes $53.45 7.5% Net income $126.55 17.8% 66 Example: Common-Size Income Statement Net sales $710.00 100.0 % Cost of goods sold $480.00 67.6% Depreciation $30.00 4.2% Earnings before interest and taxes (EBIT) $200.00 28.2% Interest $20.00 2.8% Taxable income $180.00 25.4% Taxes $53.45 7.5% Net income $126.55 17.8 %