Exercise 14-1 Common-Size Income Statement [L014-1] A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto McKenzie Sales, Ltd Comparative Income Statement This Year $7,380,000 4,600,000 2,780,000 Last Year $5,608, 800 3,515,000 2,093,800 Sales Cost of goods sold Gross margin Selling and administrative expenses: 1,373,000 710,000 2,083,000 697,000 96,000 Selling expenses 1,078,000 609,500 687,500 406,300 90,000 $ 601,000 316,300 Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $284,700 when sales increased by $1,771,200 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).) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes