Exercise $16-1($Algo$)$ Common$-$Size Income Statement $[$LO$16-1]$

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

McKenzie Sales, Limited

Comparative Income Statement

This Year Last Year

Sales $ $7,390,000$ $ $5,616,400$

Cost of goods sold $4,790,0003,514,000$

Gross margin $2,600,0002,102,400$

Selling and administrative expenses:

Selling expenses $1,393,0001,073,000$

Administrative expenses $703,000615,500$

Total expenses $2,096,0001,688,500$

Net operating income $504,000413,900$

Interest expense $101,00092,000$

Net income before taxes $ $403,000$ $ $321,900$

The company$$s board of directors is surprised to see net income increased by only $$81,100$ when sales increased by $$1,773,600.$

Required:

$1.$ Express each year's income statement in common$-$size percentages.

Note: Round your percentage answers to $1$ decimal place $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$Exercise $16-1($Algo$)$ Common$-$Size Income Statement $[$L$016-1]$

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

The company's board of directors is surprised to see net income increased by only $$81,100$ when sales increased by $$1,773,600.$

Required:

Express each year's income statement in common$-$size percentages.

Note: Round your percentage answers to $1$ decimal place $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).$