Exercise 14-1 Common-Size Income Statement (LO14-1) A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,601,200 3,509,500 2,091,700 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4,700,000 Gross margin 2,670,000 Selling and administrative expenses: Selling expenses 1,370,000 Administrative expenses 708,000 Total expenses 2,078,000 Net operating income 592,000 Interest expense 105,000 Net incone before taxes $ 487.000 1,077,500 617.500 1,695,000 396.700 88,000 $ 308.700 Members of the company's board of directors are surprised to see that net income increased by only $178,300 when sales increased by $1,768,800. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (.e., 0.1234 should be entered as 12.3).) Last Year 100 This Year 1000 63.8% % 62.71 Cost of goods sold Aoministrative expenses Total expenses Net operating incone Interest expense Net Income before taxes 10, 2.078.000 592,000 105,000 $ 487.000 0 ,00 1,695,000 396,700 88,000 300.700 Members of the company's board of directors are surprised to see that net income increased by only $178,300 when sales increased by $1,768,800. Required: 1. Express each year's income statement in common size percentages. (Round your percentage answers to 1 decimal place le, 0.1234 should be entered as 12,3).) This Year 1000 Last You 1000 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Not operating income Interest expense Net income before as