Exercise 14-7 Trend Percentages (L014-1] Rotorua Products, Ltd., 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: Sales Cash Accounts receivable, net Inventory Total current assets Current liabilities Year 1 $4,699,810 $ 94,786 401,447 814,632 $1,310,865 $ 305,218 Year 2 $4,877, e10 $ 103,938 418,837 871,019 $1,393,794 $ 333,50 Year 3 $4,958,960 $ 87,662 439, 718 817,812 $1,345,192 Year 4 $5,414,990 $ 90,653 5e2,978 890,557 $1,484,188 $ 321,267 Year 5 $5,675,160 $ 69,588 564,592 912,061 $1,546,241 $ 327,899 $ 480, 273 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 (.e., 0.1234 should be entered as 12.3).) Year 3 Year 4 Year 5 Year 1 100.0 % Year 2 107.3% 108.7 % % % 100.0 % % % % % Sales Current assets: Cash Accounts receivable Inventory Total current assets % % 100.0 % 100.0 % 100.0% % % % % % % % % % % % % Current liabilities 100.0% % % 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 Last Year Sales $7,380, ees $5,608,800 Cost of goods sold 4,7ee, eee 3,510,500 Gross margin 2,680, eee 2,098,300 Selling and administrative expenses: selling expenses 1,394, eee 1,675,500 Administrative expenses 7e8,eee 609,500 Total expenses 2,102, eee 1,685,000 Net operating income 578, eee 413,300 Interest expense 96, eee 88,000 Net income before taxes $ 482, eee $325, 300 Members of the company's board of directors are surprised to see that net Income increased by only $156,700 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 (l.e., 0.1234 should be entered as 12.3).) Last Year % This Year % % 0.0 % % 0.0% 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 % % 0.0 % 0.0 % % % 0.0 % 0.0 % % % 0.01% 0.0 %