Ch 14: Exercises/Problems 1 A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year 10 points Last Year Sales $8,000,e00 4,984,e00 3,016,eee $6,e00,eee 3,516,000 2,484,e00 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense eBook 1,480,000 712,e00 1,092,00e 618,e0e 1,710,000 2,192,000 824,e00 96,e00 $ 728,000 Hint 774,000 84,000 $ 690,eee Net income before taxes Print Members of the company's board of directors are surprised to see that net income increase- by $2,000,000 References Required: 1 Express each year's income statement in common-size percentages. (Round your percen 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