Example:Common-Size Income Statement Last Year This Year Net sales $650.00 100% $710.00 100.0% Cost of goods sold $390.00 60.0% $480.00 67.6% Depreciation $30.00 4.62% $30.00 4.2% EBIT $230.00 35.38% $200.00 28.2% Interest $20.00 3.08% $20.00 2.8% Taxable income $210.00 32.31% $180.00 25.4% Taxes $63.00 9.69% $53.45 7.5% Net income $147.00 22.62% $126.55 17.8% 77 Example: Common-Size Income Statement Last Year This Year Net sales $650.00 100% $710.00 100.0 % Cost of goods sold $390.00 60.0% $480.00 67.6% Depreciation $30.00 4.62% $30.00 4.2% EBIT $230.00 35.38% $200.00 28.2% Interest $20.00 3.08% $20.00 2.8% Taxable income $210.00 32.31% $180.00 25.4% Taxes $63.00 9.69% $53.45 7.5% Net income $147.00 22.62% $126.55 17.8 %