Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: Sales McKenzie Sales, Limited Comparative Income Statement This Year Cost of goods sold Gross margin Selling and administrative expenses: $ 7,370,000 4,710,000 2,660,000 Last Year $ 5,601,200 3,507,000 2,094,200 1,393,000 1,076,000 711,500 609,000 2,104,500 555,500 104,000 1,685,000 409,200 $ 451,500 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes 90,000 $ 319,200 Members of the company's board of directors are surprised to see that net income increased by only $132,300 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 Gross margin This Year Last Year % % % % % % Selling and administrative expenses: Selling expenses % % Administrative expenses % Total selling and administrative expenses % % Net operating income % % Interest expense % % Net income before taxes %