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 $7,340,000 $5,578,400 Cost of goods sold 4,640,000 3,514,500 Gross margin 2,700,000 2,063,900 Selling and administrative expenses: Selling expenses 1,372,000 1,075,500 Administrative expenses 705,500 611,500 Net operating income) Total expenses Interest expense Net income before taxes 2,077,500 1,687,000 622,500 376,900 97,000 89,000 525,500 $ 287,900 Members of the company's board of directors are surprised to see that net income increased by only $237,600 when sales increased by $1,761,600. 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).) Sales Cost of goods sold This Year Last Year % % % % Prev 1 of 6 Next > Net income before taxes 97,000 89,000 $ 525,500 $ 287,900 Members of the company's board of directors are surprised to see that net income increased by only $237,600 when sales increased by $1,761,600. 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 0.0 % 0.0 % Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses 0.0 % 0.0 % Net operating income 0.0 % 0.0 % Interest expense % % Net income before taxes 0.0 % 0.0 %