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 3,513,000 2,088,200 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4,590,000 Gross margin 2,780,000 Selling and administrative xpensest Selling expenses 1,396,000 Administrative expenses 711,000 Total expenses 2. 107.000 Net operating income 673,000 Interest expense 98,000 Net Income before taxes 575,000 1,081,000 613,500 1,694,500 393,700 84,000 $ 309,700 Members of the company's board of directors are surprised to see that net income increased by only $265,300 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).) This Year Last Year Sales Cost of goods sold Gross margin Seling and administrative expense Selling expenses Administrative expenses Total selling and administrative ex Net operating income Interest expense Net income before taxes RRRRRRRRR