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 $ 7,370,000 4,670,000 2,700,000 Last Year $ 5,601,200 3,507,500 2,093,700 Selling and administrative expenses: Administrative expenses 1,393,000 1,081,500 706,500 612,000 Selling expenses Total expenses Net operating income Interest expense Net income before taxes 2,099,500 600,500 99,000 $ 501,500 1,693,500 400,200 86,000 $ 314,200 Members of the company's board of directors are surprised to see that net income increased by only $187,300 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).) Sales Cost of goods sold This Year Last Year % % % % % % Gross margin Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % % Interest expense % % Net income before taxes % %