Exercise 14-1 Common-Size Income Statement (L014-1) A comparative Income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,586,000 3.513.500 2,072,500 McKennie Sales, Titd. Comparative Income statement This Year Sales $7,350,000 Cost of goods sold 4.750,000 Gross margin 2,600,000 Selling and administrative expenses Selling expenses 1,388,000 Administrative expenses 704,500 Total expenses 2,092 500 Het operating income 507,500 Interest expense 99.000 Net Income before taxes $ 408,500 1,073,000 615,000 1,688,000 384,500 94,000 $ 290,500 Members of the company's board of directors are surprised to see that net income increased by only $118,000 when sales increased by $1764,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place 0.1234 should be entered as 12.3).) This Year % % % Last Year % % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Not operating income Interest expense Net income before taxes % % % % % % % % %