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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:
McKenzie Sales, Ltd.
Comparative Income Statement
This Year Last Year
Sales $ 7,330,000 $ 5,570,800
Cost of goods sold 4,610,000 3,506,500
Gross margin 2,720,000 2,064,300
Selling and administrative expenses:
Selling expenses 1,390,000 1,073,000
Administrative expenses 711,500 612,500
Total expenses 2,101,500 1,685,500
Net operating income 618,500 378,800
Interest expense 98,000 92,000
Net income before taxes $ 520,500 $ 286,800
Members of the companys board of directors are surprised to see that net income increased by only $233,700 when sales increased by $1,759,200.
Required:
1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
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