Chapter 14 Homework Saved Help Save & Exit Submit Check my work 10 points 1 McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses 03:19:23 Selling expenses Total expenses Net operating income Interest expense Net income before taxes eBook Hint References This Year $ 7,310,000 4,620,000 2,690,000 1,392,000 711,500 2,103,500 586,500 104,000 $ 482,500 Last Year $ 5,555,600 3,511,500 2,044,100 1,081,000 616,000 1,697,000 347,100 92,000 $ 255,100 Members of the company's board of directors are surprised to see that net income increased by only $227,400 when sales increased by $1,754,400. 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).) 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 %