A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited...
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A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin This Year $ 7,320,000 4,650,000 2,670,000 Last Year $ 5,563,200 3,511,000 2,052,200 Selling and administrative expenses: 1,380,000 1,076,500 707,000 608,500 2,087,000 1,685,000 583,000 97,000 $ 486,000 367,200 91,000 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes $ 276,200 The company's board of directors is surprised to see net Income Increased by only $209,800 when sales increased by $1,756,800. Required: 1. Express each year's Income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (Le., 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 % Interest expense Net income before taxes % 0.0 % 0.0 % % 0.0 % A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin This Year $ 7,320,000 4,650,000 2,670,000 Last Year $ 5,563,200 3,511,000 2,052,200 Selling and administrative expenses: 1,380,000 1,076,500 707,000 608,500 2,087,000 1,685,000 583,000 97,000 $ 486,000 367,200 91,000 Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes $ 276,200 The company's board of directors is surprised to see net Income Increased by only $209,800 when sales increased by $1,756,800. Required: 1. Express each year's Income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (Le., 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 % Interest expense Net income before taxes % 0.0 % 0.0 % % 0.0 %
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