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 3.512,500 2. 103,900 Mckenzie Sales, Limited Comparative Incontinent This Year Sales $ 7,390,000 Cost of goods sold 4.690,000 Gross margin 2.200.000 Selling and administrative expenses: Selling expenses 1,378,000 Administrative expenses 712,000 Total expenses 2,090,000 Net operating income 610,000 Interest expense 99,000 Net income before taxes $ 511,000 1,074,500 610,000 1,684,500 419,400 85,000 $ 334,400 Members of the company's board of directors are surprised to see that net income increased by only $176,600 when sales increased by $1,773,600. 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).) This Year Last Ye % % 00% 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 Net income before taxes % 00% 0.01% % 0.0% 0.01% 00% 96 0.0 %