Last Year $ 5,570,000 3,513,500 2,057,300 Molennie Baler, Limited Comparative Income Statement This Year Sales $ 7,230,000 Cont of goods sold 4,230,000 Gross margin 2,600,000 Selling and administrative expenses Selling expenses 1,391,000 Administrative expenses 704,500 Total expenses 2,095,500 Net operating income 504,500 Interest expense 98,000 Net income before taxes $ 406,500 1,073,500 616,500 1,690,000 367,300 84.000 $ 283,300 Members of the company's board of directors are surprised to see that net income increased by only $123,200 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 (le, 0.1234 should be entered as 12.3).) This Year Last Year % % % % % % 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 % % % % % % % % % % % %