Exercise 14.1 Common-Size Income Statement (L014-1) A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Lant Year $5,601,200 3,507.000 2,094,200 McKenzie Sales, Itd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4.620,000 Grons margin 2,750,000 Selling and administrative expenses Selling expenses 1,399,000 Administrative expenses 703,000 Total expenses 2. 102,000 Net operating income 648,000 Interest expense 97,000 Net Income before taxes $. 551,000 1,073,500 614,500 1,588,000 406.200 91.000 $ 315,200 Members of the company's board of directors are surprised to see that net income increased by only $235,800 when sales increased by $1,768,800 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 Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes % X % % % % % %