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 105,000 487.000 Net 'income before taxes 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).) This Year Last Year Sales Cost of goods sold Gross margin Prey 2 of 4 Next >