Exercise 16-1 (Algo) Common-Size Income Statement [LO16-1]

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:

McKenzie Sales, Limited Comparative Income Statement
	This Year	Last Year
Sales	$ 7,330,000	$ 5,570,800
Cost of goods sold	4,790,000	3,509,500
Gross margin	2,540,000	2,061,300
Selling and administrative expenses:
Selling expenses	1,372,000	1,075,500
Administrative expenses	709,000	608,500
Total expenses	2,081,000	1,684,000
Net operating income	459,000	377,300
Interest expense	101,000	91,000
Net income before taxes	$ 358,000	$ 286,300

Members of the companys board of directors are surprised to see that net income increased by only $71,700 when sales increased by $1,759,200.

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).)