Exercise 16-1 (Algo) Common-Size Income Statement [LO16-1] A comparative Income statement is given below for McKenzie Sales, Ltd. of Toronto Mckenzie Sales, Ltd Comparative Income statement This Year Last Year Sales $7,390,000 $5,616,400 Cost of goods sold 4,650,000 3.508,500 Gross margin 2,740,000 2.107.900 Selling and administrative expenses Selling expenses 1,400,000 1,079,500 Administrative expenses 704,000 613,000 Total expenses 2,100,000 1,692,500 et operating Income 636,000 415.400 Interest expense 97.000 89,000 Net Income before taves $ 539,000 $26.400 Members of the company's board of directors are surprised to see that net income increased by only $212,600 when sales increased by 51773,600 Required: 1 Express each year's income statement in common-size percentages (Round your percentage answers to 1 decimal place dle.. 0.1234 should be entered os 12.3).) Members of the company's board of directors are surprised to see that net income increased by only $212,600 when sales increased by $1773,600 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 os 12.3).) This Year Last Year 3 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total sing and administrative expenses Net operating income restesponse Not income before taxon % 12