Exercise 14-1 Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,380,000 Last Year $5,608,800 Cost of goods sold 4,750,000 3,508,000 Gross margin 2,630,000 2,100,800 Selling and administrative expenses: Selling expenses Administrative expenses 1,387,000 704,000 1,080,000 615,000 Total expenses 2,091,000 1,695,000 Net operating incone. Interest expense 539,000 105,000 405,800 88,000 Net income before taxes $ 434,000 $317,800 Members of the company's board of directors are surprised to see that net income increased by only $116,200 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 (... 0.1234 should be entered as 12.3).)