Exercise 14-7 (Algo) Trend Percentages (LO14-1) Rotorua Products, Limited, of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows Year 1 Year 2 Year 3 Year 4 Years Sales $ 4,507,160 $ 4,763,570 $ 4,969, 470 5 5,423,370 $ 5,631,570 Cash 5 88,429 592,690 5.34,663 Accounts receivable, net $ 85,780 $31.711 405,893 433,466 451,306 507,352 56), 159 Inventory 807, 792 870,272 822,579 380, 284 899,262 Total current assets $ 1,302,114 $ 1,396,428 5 1,358,540 5 1,473, 416 $ 1,544,132 Current abilities $ 315,802 $ 344,463 $ 338,465 $ 323,838 $395,003 Required: 1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place fl.e., 0.1234 should be entered as 12.3).) Yoar 1 Year 2 Year 3 Year 4 Year 5 X % % % % % Sales Current assets Cash Accounts receivable, not Inventory Total current assets Current liabilities % % % 96 % % % % 6 % % % 56 % % % % % % A comparative income statement is given below for McKenzie Sales, Limited, of Toronto McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,380,000 $ 5,608,800 Cost of goods sold 4,660.000 3.515,500 Gross margin 2.720,000 2,093,300 Selling and administrative expenses Selling expenses 1,393,000 1,079,000 Administrative expenses 207.000 613,000 Total expenses 2,100,000 1,692,000 net operating income 620,000 401,300 Interest expense 97,000 85,000 Net Income before taxes $ 523,000 $ 316,300 Members of the company's board of directors are surprised to see that net income increased by only $206,700 when sales increased by $1771,200 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie. 0.1234 should be entered as 12.3).) Last Year This Year % % 0.01% 0.0 % Sales Cost of goods sold Gross margin Soling and administrative expenses Selling expenses Administrative expenses Totul selling and administrative expenses Net operating income Interest expense Not income before taxes % RR 0.0% 0.0% 0.01% 0.0% % 0.0 % % 0.0 %