Final answer:
To prepare a comparative common-size income statement, express each income statement item as a percentage of sales. For calculating gross annual income of hourly jobs, multiply the hourly wage by hours per week and weeks per year; salaried jobs' incomes are typically provided.
Step-by-step explanation:
The comparative common-size income statement for McClane Designs, Inc. involves expressing each item on the income statement as a percentage of sales, which allows for easy comparison of the company's financial performance over different periods or with other firms. To prepare this statement, first, list all the income statement items. Then for each period, divide each item by the total sales revenue of that specific period and multiply by 100 to get a percentage. This process enables the analysis of trends and identification of growth patterns or potential problem areas in the company’s financials.
Regarding the calculation of gross annual income for different job positions like McDowel's and Custodian, you would typically multiply the hourly wage by the number of hours worked per week and then by the number of weeks worked per year. If the customer care and financial analyst positions are salaried, no further calculations might be necessary as their gross annual income should be provided.