Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1) A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: ces Sales Cost of goods sold Gross margin Mckenzie Sales, Limited Comparative Income Statement This Year $7,350,000 4,790,000 2,560,000 Last Year $ 5,586,000 3,588,500 2,077,500 Check my wor Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 1,388,000 711, eee 2,099,000 461,000 182,000 $359,000 1,073,000 611,000 1,684,000 393,500 89,000 $304,500 Members of the company's board of directors are surprised to see that net income increased by only $54,500 when sales increased by $1.764,000. Required: 2 2 N w < Prev 2 of 6 Next > FO DELL # $ % 3 4 5 6 E R T Y C NA 8 S D F G H J 2-in-1 x Alt FRO V B N M 6 0 Y O V. P12 L P " A. 9801 Alt Ctri www ? I