Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin This Year $ 7,370,000 4,770,000 2,600,000 Last Year $ 5,601,200 3,509,000 2,092,200 Selling and administrative expenses: 1,391,000 1,074,500 708,000 612,000 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 2,099,000 501,000 97,000 $ 404,000 1,686,500 405,700 92,000 $ 313,700 Members of the company's board of directors are surprised to see that net income increased by only $90,300 when sales increased by $1,768,800. 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 0.0 % 0.0 % Selling and administrative expenses: Selling expenses % % Administrative expenses % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense % % Net income before taxes 0.0 % 0.0 %