2 Exercise 14-1 Common-Size Income Statement (LO14-1) A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: ts 01:43:20 Last Year $5,555,600 3,508,000 2,047,600 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,310,000 Cost of goods sold 4,600,000 Gross margin 2,710,000 Selling and administrative expenses : Selling expenses 1,392,000 Administrative expenses 709,500 Total expenses 2,101,500 Net operating income 608,500 Interest expense 102,000 Net income before taxes $ 506,500 eBook 1,076,000 613,000 1,689,000 358,600 84,000 $ 274,600 Hint Print Members of the company's board of directors are surprised to see that net income increased by only $231,900 when sales increased by $1,754,400. ferences Required: 1. Express each year's income statement in common-size percentages. (Round 0.1234 should be entered as 12.3).) age answers to 1 decimal place (i.e., Last Year % This Year % % 0.01% % 0.0 % % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % % 0.0 % 0.0 % % 0.0 % 0.0 % % 0.0 % 0.0%