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 $ 7,380,000 4,640,000 2,740,000 Last Year $5,608,800 3,506,500 2,102,300 Selling and adeinistrative expenses: 1,378,000 1,073,000 Administrative expenses 710,000 615,000 Selling expenses Total expenses Net operating income Interest expense Net income before taxes 2,088,000 652,000 104,000 $ 548,000 1,688,000 414,300 86,000 $ 328,300 Members of the company's board of directors are surprised to see that net income increased by only $219,700 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 (i.e.. 0.1234 should be entered as 12.3).) Sales This Year Last Year % < Prev 2 of 5 Next >