Sales McKenzie Sales, Limited Comparative Income Statement This Year $ 7,350,000 4,710,000 2,640,000 Last Year $ 5,586,000 3,512,000 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 2,074,000 1,386,000 1,072,500, 708,000 611,000 1,683,500 390,500 2,094,000 546,000 103,000 $ 443,000 89,000 $ 301,500 Members of the company's board of directors are surprised to see that net income increased by only $141,500 when sales increased by $1,764,000. 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 Gross margin Selling and administrative expenses: This Year Last Year % % % % % % Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % % Interest expense % % Net income before taxes % % Prev 1 of 2 Next