A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Sales Cost of goods sold $ 7,390,000 4,680,000 Gross margin 2,710,000 1,374,000 705,500 Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income. Interest expense Net income before taxes 2,079,500 630,500 106,000 $ 524,500 Last Year $ 5,616,400 3,507,500 2,108,900 1,079,000 617,000 1,696,000 412,900 91,000 $ 321,900 Members of the company's board of directors are surprised to see that net income increased by only $202,600 when sales increased by $1,773,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (.e.. 0.1234 should be entered as 12.3).) 1 nts eBook Hint Print Members of the company's board of directors are surprised to see that net income increased by only $202,600 when sales increased by $1,773,600. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie., 0.1234 should be entered as 12.3).) This Year Last Year Sales References 100.0 % 100.0 % Cost of goods sold % 62.5 % Gross margin 100.0 % 37.5 % Selling and administrative expenses: Selling expenses % % Administrative expenses % 11.0 % Total selling and administrative expenses 0.0 % 11.0 % Net operating income 100.0 % 26.5 % interest expense 1.4 % 1.6 % Net income before taxes 98.6 % 24.9 %