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 3,514,500 2,086,700 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,370,000 Cost of goods sold 4,630,000 Gross margin 2,740,000 Selling and administrative expenses: Selling expenses 1,396,000 Administrative expenses 702,500 Total expenses 2,098,500 Net operating income 641, 500 Interest expense 96,000 Net income before taxes $ 545,500 1,072,500 617. See 1,690,000 396,700 88,000 308.700 $ Members of the company's board of directors are surprised to see that net income increased by only $236,800 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 (i.e.. 0.1234 should be entered as 12.3).) 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 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