Exercise 14-1 Common-Size Income Statement (LO14-1] A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,380,000 $5,608,800 Cost of goods sold 4,720,000 3,513,500 Gross margin 2,660,000 2,095,300 Selling and administrative expenses: Selling expenses 1,394,000 1,072,500 Administrative expenses 707,000 617,500 Total expenses 2,101,000 1,690,000 Net operating income 559,000 405,300 Interest expense 100,000 85,000 Net income before taxes $ 459,000 $ 320, 300 Members of the company's board of directors are surprised to see that net income increased by only $138,700 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 % % 0.0 % % 0.0 % 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 % % 0.0 % 0.0 % % 0.0 % % % 0.0 % 0.0 % % 0.0 %