Sales McKenzie Sales, Limited Comparative Income Statement This Year $ 7,340,000 4,620,000 2,720,000 Last Year $ 5,578,400 3,512,000 2,066,400 Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses Selling expenses Total expenses Net operating income Interest expense Net income before taxes 1,387,000 1,076,500 704,500 613,000 1,689,500 376,900 2,091,500 88,000 628,500 105,000 $ 523,500 $ 288,900 Members of the company's board of directors are surprised to see that net income increased by only $234,600 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 %