Sales McKenzie Sales, Limited Comparative Income Statement Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year Last Year $ 5,624,000 3,510,500 2,113,500 $ 7,400,000 4,640,000 2,760,000 1,394,000 1,079,000 711,500 610,000 2,105,500 1,689,000 654,500 100,000 89,000 $ 554,500 $ 335,500 424,500 The company's board of directors is surprised to see net income increased by only $219,000 when sales increased by $1,776,000. Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). Sales Cost of goods sold Gross margin This Year Last Year % % % % % % Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % % Interest expense % % Net income before taxes % %