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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,578,400 3,511,500 2,066,900 Mckenzie Sales, Ltd. Comparative Income Statement This
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,578,400 3,511,500 2,066,900 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,340,000 Cost of goods sold 4,700,000 Gross margin 2,640,000 Selling and administrative expenses: Selling expenses 1,375,000 Administrative expenses 708,000 Total expenses 2,083,000 Net operating income 557,000 Interest expense 106,000 Net income before taxes $ 451,000 1,074,000 611,000 1,685,000 381,900 93,000 $ 288,900 Members of the company's board of directors are surprised to see that net income increased by only $162,100 when sales increased by $1,761,600. 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).) This Year Last Year % % % % % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % % % % % % % % % %
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