Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,310,000 $ 5,555,600 Cost of goods sold 4,660,000 3,513,000 Gross margin 2,650,000 2,042,600 Selling and administrative expenses: Selling expenses 1,377,000 1,077,500 Administrative expenses 709,000 615,500 Total expenses 2,086,000 1,693,000 Net operating income 564,000 349,600 Interest expense 97,000 86,000 Net income before taxes $ 467,000 $ 263,600 Members of the companys board of directors are surprised to see that net income increased by only $203,400 when sales increased by $1,754,400. 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).)