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	$	7,330,000		$	5,570,800
Cost of goods sold		4,600,000			3,514,000
Gross margin		2,730,000			2,056,800
Selling and administrative expenses:
Selling expenses		1,386,000			1,075,500
Administrative expenses		704,500			609,000
Total expenses		2,090,500			1,684,500
Net operating income		639,500			372,300
Interest expense		98,000			89,000
Net income before taxes	$	541,500		$	283,300

Members of the companys board of directors are surprised to see that net income increased by only $258,200 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).)