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2 Chademy Exercise 14-1 Common-Size Income Statement [LO14-1 A comparative Income statement is given below for McKenzie Sales Ltd. of Toronto Noxon dates. La Comparative

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2 Chademy Exercise 14-1 Common-Size Income Statement [LO14-1 A comparative Income statement is given below for McKenzie Sales Ltd. of Toronto Noxon dates. La Comparative to statenent This Year Last Year Sales 57.390,000 $5,616,400 Cost of goods sold 4.590,000 3,511.000 Gross margin 2,700,000 201400 telling and administrative expenses Selling expenses 1.384.000 1,072.000 Administrative expenses 705.000 610.000 Total expenses 2.000.000 1. BODO Det operating income 511.000 423,400 Interest expense 100,000 22.000 Net income before taxes 1511,000 $31.400 + ence Members of the company's board of directors are surprised to see that net income increased by only $179.230 when soles increased by $1.773,600 Required: 1 Express each year's income statement in common site percentages (Round your percentage answers to 1 decimal place ( 0.1234 should be entered as 12.3)) LY The Year % % Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Thorne % % % 2 Last Yen $5,616,400 3,511,000 2105,400 2.4 ponti Menate Sales, Lda Comparative Incona Statement This Year Sales $7,390,000 Coat or goods sold 3.650.000 Crone margin Selling and administrative wxpenses Selling expense 3,384,000 Administrative expenses 705,000 Total expert 2,089,000 Not operating income 611.000 Interest expense 100,000 Net income before taxes 511.000 1,022,000 610.000 662,000 423,400 92.000 31.400 Font Members of the company's board of directors are surprised to see that net income increased by only $179,600 when sales increased by $1773,600 Point Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answerstio 1 decimal place le 01234 should be entered as 12.3).) References This Year % Last Year % % % 54 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total saling and administrative expenses Net operating home Interest expense Net income before taxes % % % % % % %

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