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 $ 5,616,400 3,513,500 2,102,900 McKenzie Sales, Limited Comparative Income Statement This Year Sales $ 7,390,000 Cost of goods sold 4,730,000 Gross margin 2,660,000 Selling and administrative expenses Selling expenses 1,382,000 Administrative expenses 704,500 Total expenses 2,086,500 Net operating income 573,500 Interest expense 105,000 Net income before taxes $ 468,500 1,081,000 612,000 1,693,000 409,900 85,000 $ 324.900 Members of the company's board of directors are surprised to see that net income increased by only $143,600 when soles increased by $1773,600 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (l.e. 01234 should be entered as 12.3).) This Year % % 0.0 % Last Year % % 0.01% % Sales Cont of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % 0.0% 0.0% % 0.0% % % 0.01% 0.01% % 0.01%