Cost of goods sold		4,670,000			3,510,500
Gross margin		2,640,000			2,045,100
Selling and administrative expenses:
Selling expenses		1,388,000			1,076,500
Administrative expenses		710,000			615,500
Total expenses		2,098,000			1,692,000
Net operating income		542,000			353,100
Interest expense		101,000			90,000
Net income before taxes	$	441,000		$	263,100

Lant Tear $5,555,600 3.510.500 21,005.100 Coparative Thcon Statement This Year Sales $7,310,000 coat of goods sold 4.670.000 Cross 2.540,000 Selling and administrative expenses Selling expenses 1,318,000 ministrative expenses 210,000 Total expenses 2.995.000 Het operating Income 5+2,000 Interest expense 101.000 Net Income before taxea 461,000 1,076,500 615,500 1,692,000 353,100 90,000 $ 263,100 Members of the company's board of directors are surprised to see that net Income increased by only $177,900 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 (le, 0.1234 should be entered as 12.3).) This Year Last Year * Sales Cost of goods sold Gross margin Seling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before %