Exercise 13-1 Common-Size Income Statement [LO13-1]

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

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,300,000		$	5,548,000
Cost of goods sold		4,600,000			3,508,500
Gross margin		2,700,000			2,039,500
Selling and administrative expenses:
Selling expenses		1,400,000			1,075,000
Administrative expenses		708,000			612,000
Total expenses		2,108,000			1,687,000
Net operating income		592,000			352,500
Interest expense		97,000			91,000
Net income before taxes	$	495,000		$	261,500

Members of the companys board of directors are surprised to see that net income increased by only $233,500 when sales increased by $1,752,000.

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).)