Exercise 14-1 (Static) Common-Size Income Statement (LO14-1) A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: Last Year $ 6,000,000 3,516,000 2,484,000 McKenzie Sales, Limited Comparative Income Statement This Year Sales $ 8,000,000 Cost of goods sold 4,984,000 Gross margin 3,016,000 Selling and administrative expenses: Selling expenses 1,480,000 Administrative expenses 712,000 Total expenses 2,192,000 Net operating income 824,000 Interest expense 96,000 Net income before taxes $ 728,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000. 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 % % % % % % % % % %