Exercise 14-1 (Algo) Common-Size Income Statement (LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto Last Year $ 5,563,200 3 513,000 2.050 200 Mckenzie Sales, Dimited Comparative Income Statement This Year Sales $ 7,320,000 Cost of goods sold 4,690,000 Gross margin 2,630,000 Selling and administrative expenses: Selling expenses 1,380,000 Administrative expenses 709,500 Total expenses 2,089.500 Net operating income 540,500 Interest expense 100.000 Net Income before taxes $440,500 1,072.000 616,000 1,689,000 361,200 87,000 $ 274,200 Members of the company's board of directors are surprised to see that net income increased by only $166,300 when sales increased by $1756,800 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 os 12.3).) This Year Last Year % % 0.01% 0.01% % % Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Not income before taxes selge % 0.01% 0.01% 00% % 0.0 % 0.01% % 0.01%