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 Sales This year $7,310,000 Last Year $5,555,600 Cost of goods sold Grass margin 2,420, 2, Selling and adsinistrative expenses 1,388,000 1,074,000 Selling expenses Administrative expenses Total expenses Net operating inco Interest expense Net Income before taxes. 381,000 $421,000 87,000 Members of the company's board of directors are surprised to see that net income increased by only $143,400 when sales increased by $1,754,400 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (.. 0.1234 should be entered as 12.31) Sales This Year Last Year Cast af goods s Gross margin 60% 20% Selling and administrative spines Seling spen % % Administrative expenses Th Total seling and administrativ xpe 0% 00% Nul operating income 20% 100% N Net income bebes lases 00% 00% 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 Sales $7,310,000 Last Year $5,555,600 Cost of goods soldi 4,690,000 3,506,500 Gross margin 2,620,000 2,049,100 Selling and administrative expenses Selling expenses 1,388,000 1,074,000 Administrative expenses. 708,000 Total expenses 2,096,000 Net operating income Interest expense 524,000 101,000 608,500 3,682,540 350,000 87,000) Net income before taxes 5 423,000 $279,600 Members of the company's board of directors are surprised to see that net income increased by only $143,400 when sales increased by $1,754,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (Le.. 0.1234 should be entered as 12.3).) This Year Last Year Gross margin Sales Cost of goods sold Selling and administrative expenses % % 0.0 % 00% % Selling expenses % % Administrative expenses Total seting and administrative expenses 100% 00% 0.0 % 0.0% Net operating income % Interest expense 90% 100% Net income before taxes a