ch 13 exercises #10

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,330,000		$	5,570,800
Cost of goods sold		4,700,000			3,509,500
Gross margin		2,630,000			2,061,300
Selling and administrative expenses:
Selling expenses		1,390,000			1,076,500
Administrative expenses		703,500			617,500
Total expenses		2,093,500			1,694,000
Net operating income		536,500			367,300
Interest expense		106,000			92,000
Net income before taxes	$	430,500		$	275,300

Members of the companys board of directors are surprised to see that net income increased by only $155,200 when sales increased by $1,759,200.

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).)

	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	%	0.0	%
Interest expense		%		%
Net income before taxes	0.0	%	0.0	%