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 $ 7,310,000 Cost of goods sold Gross margin 4,690,000 2,620,000 Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income: Interest expense Net income before taxes Last Year $ 5,555,600 3,514,000 2,041,600 1,377,000 1,078,500 702,000 609,500 2,079,000 1,688,000 541,000 353,600 102,000 $439,000 92,000 $ 261,600 Members of the company's board of directors are surprised to see that net income increased by only $177,400 when sales increased by $1,754,400. 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).)