Exercise 13-1 Common-Size Income Statement [LO13-1]

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,330,000		$	5,570,800
Cost of goods sold		4,750,000			3,514,000
Gross margin		2,580,000			2,056,800
Selling and administrative expenses:
Selling expenses		1,387,000			1,081,000
Administrative expenses		710,500			608,500
Total expenses		2,097,500			1,689,500
Net operating income		482,500			367,300
Interest expense		104,000			92,000
Net income before taxes	$	378,500		$	275,300

Members of the companys board of directors are surprised to see that net income increased by only $103,200 when sales increased by $1,759,200.

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		%		%