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 This Year $ 7,380,000 Last Year $5,608,800 Cost of goods sold 4,740,000 3,509,500 Gross margin 2,640,000 2,099,300 Selling and administrative expenses: 1,371,000 1,081,500 708,500 616,500 2,079,500 1,698,000 560,500 104,000 $ 456,500 401,300 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 93,000 $ 308,300 Members of the company's board of directors are surprised to see that net income increased by only $148,200 when sales increased by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (... 0.1234 should be entered as 12.3).) This Year Last Year % Sales % Cost of goods sold Gross margin 0.0 % de de % % 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 %