Exercise 14-1 (Algo) Common-Size Income Statement (L014-1] A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto Last Year 5 5,570,800 3,515,500 2,055,300 McKenzie Sales, Limited Comparative Income Statement This Year Sales $ 7,330,000 Cost of goods sold 4.610,000 Gross margin 2,720,000 Selling and administrative expenses Selling expenses 1,398,000 Administrative expenses 711,500 Total expenses 2,109,500 Net operating income 610,500 Interest expense 106,000 Net Income before taxes $ 506,500 1,078,000 616,000 1,694,000 361,300 85,000 5 276,300 Members of the company's board of directors are surprised to see that net income increased by only $230,200 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 (h.e. 0.1234 should be entered as 12.3).) This Year % % 0.0% Last Yoar % % 0.0 % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expenso Net Income before taxes % 0.0% 0.0 % % % *0.01% 0.01% % % 0.0% 0.0 %