A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales This Year $ 7,330,000 Last Year $ 5,570,800 Cost of goods sold. 4,680,000 3,514,500 Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 2,650,000 2,056,300 1,380,000 1,079,500 709,500 614,000 2,089,500 1,693,500 560,500 362,800 104,000 $ 456,500 87,000 $ 275,800