2 A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: 1.66 points McKenzie Sales, Linited Comparative Income Statenent Sales Cost of goods sold Gross margin This Year $ 7,310,000 4,660,000 2,650,000 Last Year $ 5,555,600 3,513,500 2,042,100 Selling and administrative expenses: Book Selling expenses Total expenses Net operating incone 1,376,000 1,078,000 Administrative expenses 709,000 612,500 2,085,000 1,690,500 565,000 351,600 Interest expense set incone before taxes 100,000 89,000 $465,000 $262,600 Hint Print References Members of the company's board of directors are surprised to see that net income increased by only $202,400 when sales increased by $1,754,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (l.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 % 1% Net income before taxes 0.0 % 0.0 %