A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Mckenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,360,000 $5,593,600 Cost of goods sold 4,720,000 3,510,500 Gross margin 2,640,000 2,083,100 Selling and administrative expenses: Selling expenses Administrative expenses ces 1,379,000 703,500 1,082,000 612,000 Total expenses 2,082,500 1,694,000 Net operating income Interest expense 557,500 1389,1001 98,000 85,000 $ 459,500 $ 1304,100 Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $155,400 when sales increased by $1,766,400. 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).) 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).) Answer is complete but not entirely correct. This Year 100.0 64.7 35.3 % % Last Year 100.0 63.3 % 36.7 % % % 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 19.5 X 11.0 % % 30.5 18.9 % 9.6 28.5 6.8 1.3 5.5 % % % 6.2 1.5 % 4.7 %