2.

A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Trimited Comparative Income Statement This Year Last Year Sales $ 7,300,000 $ 5,548,000 Cost of goods sold 4,680,000 3,511,500 Gros margin 2,620,000 2,036,500 Selling and administrative expenses Selling expension 1,396,000 1,073,500 Administrative expenses 705,500 613,500 Total expenses 2,101,500 1,687,000 Net operating income 518,500 349,500 Interest expense 97,000 93,000 Net income before taxen $ 421,500 $ 256,500 Members of the company's board of directors are surprised to see that net income increased by only $165,000 when sales increased by $1,752,000. 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).) This Year Last Year % 0.0 % % 0.0% Sales Cost of goods sold Grons margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Not operating income Interest expense Not Income before taxes % % % % 0.0 % 0.01% % 0.0 % 0.0 % % 0.0% 0.0 %