2 Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: 2.5 points 015254 McKenzie Sales, Limited Comparative Income Statement Sales This Year $ 7,380,000 Last Year $5,608,800 Skipped Cost of goods sold 4,660,000 3,514,500 Gross margin 2,720,000 2,094,300 Selling and administrative expenses: 1,393,000 1,077,500 eBook Administrative expenses 704,500 611,000 2,097,500 Hint 622,500 98,000 Print $ 524,500 References Selling expenses Total expenses Net operating income Interest expense Net income before taxes 1,688,500 405,800 93,000 $ 312,000 Members of the company's board of directors are surprised to see that net income increased by only $211,700 when sales increased by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i... 0.1234 should be entered as 12.3).) Sales Cost of goods sold Gross margin This Year Last Year Interest expense Net income before taxes 98,000 93,000 $ 524,500 $ 312,800 Members of the company's board of directors are surprised to see that net income increased by only $211,700 when sales increased by $1,771,200. 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 + This Year Last Year % 0.0 % 0.0 % Selling expenses Selling and administrative 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 %