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 This Year Sales Cost of goods sold Gross margin $7,350,000 4,690,000 2,660,000 Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Last Year $ 5,586,000 3,506,500 2,079,500 1,078,500 612,500 1,691,000 1,398,000 703,500 2,101,500 558,500 98,000 388,500 90,000 $ 460,500 $ 298,500 Members of the company's board of directors are surprised to see that net income increased by only $162,000 when sales increased by $1,764,000. Required: 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 %