Analyze the Common Size Income Statements Below for Coast Company

Essay

Analyze the common size income statements below for Coast Company:
$\begin{array}{lrr}\text { (in percent) }&2015&2014\\\hline\text { Net sales } & 100 & 100 \\\text { COGS } & 62 & 65\\\text { Gross margin }&38&35\\\text { Research and development }&9&5\\\text { Selling, general and administrative }&11&17\\\text { Restructuring, asset impairments and other charges }&1&8\\\text { Income/(loss) from operations }&17&5\\\text { Interest expense }&(3)&(1)\\\text { Income/(loss) before taxes }&14&4\\\text { Provision for/(benefit from) income taxes }&4&1\\\text { Net income/(loss) }&10&3\end{array}$