Exercise 14-1 Common-Size Income Statement (LO14-1] A comparative income statement is given below for Mckenzie Sales, Ltd., of Toronto: Last Year $5,593,600 3,512,000 2,081,600 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,360,000 Cost of goods sold 4,670,000 Gross margin 2,690,000 Selling and administrative expenses: Selling expenses 1,377,000 Administrative expenses 710,500 Total expenses 2,087,500 Net operating income 602,500 Interest expense 103,000 Net income before taxes $ 499,500 1,082,000 608,500 1,690,500 391,100 84,000 $ 307,100 Members of the company's board of directors are surprised to see that net income increased by only $192,400 when sales increased by $1,766,400. 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 % % % % 0.0 % 0.0 % Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income % % % % 0.0 % 0.0 % 0.0 % 0.0 % Interest expense % % Net income before taxes 0.0 % 0.0 %