Analyze the Common Size Income Statements Below for 3T Company

Essay

Analyze the common size income statements below for 3T Company:
$\begin{array}{lcc}&2015&2014\\\text { Net sales } & 100 \% & 100 \% \\\text { COGS } & 89 & 87\\\text { Gross margin }&11\%&13\%\\\text { Selling, general and administrative }&7&9\\\text { Restructuring, asset impairments and other charges }&0&9\\\text { Income/(loss) from operations }&4\%&(5)\%\\\text { Interest expense }&(1)&(2)\\\text { Income/(loss) before taxes }&3\%&(7\%)\\\text { Provision for/(benefit from) income taxes }&1&0\\\text { Income/(loss) after taxes }&2\%&(7\%)\\\text { Discontinued operations, net }&6&1\\\text { Net income (loss) }&8\%&(6)\%\end{array}$