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 Sales Cost of goods sold Gross margin $ 7,380,000 4,660,000 2,720,000 Last Year $ 5,608,800 3,507,500 2,101,300 Selling and administrative expenses: Selling expenses Total expenses Net operating income 1,384,000 1,079,500 Administrative expenses 705,000 613,500 2,089,000 1,693,000 Interest expense Net income before taxes 631,000 97,000 408,300 $ 534,000 85,000 $ 323,300 Members of the company's board of directors are surprised to see that net income increased by only $210,700 when sales increased by $1,771,200. 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 Year Sales % % Cost of goods sold % % Gross margin 0.0 % 0.0 % Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense % % Net income before taxes 0.0 % 0.0 % Prev 1 of 11 MacBook Air