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 3,515,000 2,078, 600 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,360,000 Cost of goods sold 4,690,000 Gross margin 2,670,000 Selling and administrative expenses: Selling expenses 1,397,000 Administrative expenses 708,500 Total expenses 2,105,500 Net operating income 564,500 Interest expense 99,000 Net income before taxes $ 465,500 1,077,500 610,500 1,688,000 390, 600 86,000 $ 304,600 Members of the company's board of directors are surprised to see that net income increased by only $160.900 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 12.3).) This Year Last Year % % % 0.01% 0.01% % % Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total seling and administrative expenses Net operating income Interest expense Net income before taxes % % 0.0% 0.0 % 0.0 % 0.0% % % 0.01% 0.0%