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 3,514,500 2,086,700 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4,670,000 Gross margin 2,700,000 Selling and administrative expenses: Selling expenses 1,398,000 Administrative expenses 709,000 Total expenses 2, 107,000 Net operating income 593,000 Interest expense Net income before taxes $ 490,000 1,077,500 614,500 1,692,000 394,700 84.000 $ 310,700 103.000 Members of the company's board of directors are surprised to see that net income increased by only $179,300 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 (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 Not Income before taxes 0.01% 00%