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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto Last Year $5,555,600 3,500,500 2,047, 100 McKenzie Sales, Ltd. Comparative Income statement

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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto Last Year $5,555,600 3,500,500 2,047, 100 McKenzie Sales, Ltd. Comparative Income statement This Year Sales $7,310,000 Cost of goods sold 4,760,000 Gross margin 2,550,000 Selling and administrative expenses Selling expenses 1,375,000 Administrative expenses 706,500 Total expenses 2,081,500 Het operating income 468,500 Interest expense 98,000 Net Income before taxes $ 370,500 1,081,000 617,500 1,698,500 348,600 87.000 $ 261,600 Members of the company's board of directors are surprised to see that net income increased by only $108,900 when sales increased by $1754,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie, 0.1234 should be entered as 12.3).) Answer is complete but not entirely correct. This Year Last Year Sales 7,310,000.0 % 5,558,600.0 % Cost of goods sold 4,760,000.0 % 3,508,500.0 % Gross margin 2,550,000.0 % 2.047.100.0 % Selling and administrative expenses Selling expenses 1,375,000.0 % 1.081.000.0 % Administrative expenses 706,500.0 % 617 500.0 % Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 1,375,000 706,500 2,081,500 468,500 98,000 $ 370, 500 1,081,000 617,500 1,698,500 348,600 87,000 $ 261,600 Members of the company's board of directors are surprised to see that net income increased by only $108,900 when sales increased by $1,754,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie.. 0.1234 should be entered as 12.3).) Answer is complete but not entirely correct. This Year Last Year Sales 7.310,000.0 % 5,555,600.0 Cost of goods sold 4,760,000.0 % 3,508,500.0 Gross margin 2,550,0000 % 2,047,100.0 % Selling and administrative expenses: Selling expenses 1,375,000.0 % 1,081,000.0 % Administrative expenses 706,500.0 % 617,500.0 % Total selling and administrative expenses 2,081,500,0 % 1.698,500.0 % Net operating income 468,500.0 % 348,600.0 % Interest expense 98,000.0 % 87,000.0 % Net Income before taxes 370,500.0 % 261,600.0 % 3

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