Exercise 15-1 Common-Size Income Statement [LO15-1]

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,370,000		$	5,601,200
Cost of goods sold		4,610,000			3,507,000
Gross margin		2,760,000			2,094,200
Selling and administrative expenses:
Selling expenses		1,382,000			1,074,500
Administrative expenses		706,000			609,000
Total expenses		2,088,000			1,683,500
Net operating income		672,000			410,700
Interest expense		102,000			93,000
Net income before taxes	$	570,000		$	317,700

Members of the companys board of directors are surprised to see that net income increased by only $252,300 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 (i.e., 0.1234 should be entered as 12.3).)