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 $7,390,000 $5,616,400 4,780,000 3,512,500 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,610,000 2,103,900 Selling expenses 1,388,000 1,076,000 711,000 Administrative expenses Total expenses Net operating income 611,500 2,099,000 1,687,500 416,400 511,000 105,000 Interest expense 92,000 Net income before taxes $406,000 $ 324,400 Members of the company's board of directors are surprised to see that net income increased by only $81,600 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 i.e., 0.1234 should be entered as 12.3). This Year Last Year Sales Cost of goods sold Gross margin Selng and administrative expenses 0.0% 0.01% Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 0.01% 0.01% 0.01% 0.0% 0.01% 0.01%