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 $7,340,000 $5,578,400 Cost of goods sold 4,690,000 3,506,500 Gross margin 2,650,000 2,071,900 Selling and administrative expenses: Selling expenses 1,373,000 1,076,000 Administrative expenses 711,000 613,000 Total expenses 2,084,000 1,689,000 Net operating income 566,000 382,900 Interest expense 97,000 85,000 Net income before taxes $ 469,000 $ 297,900 Members of the company's board of directors are surprised to see that net income increased by only $171,100 when sales increased by $1,761,600. 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).) Members of the company's board of directors are surprised to see that net income increased by only $171,100 when sales increased by $1,761,600. 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 % % 0.0 % % 0.0 % % Sales 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 % % % 0.0 % 0.0 % 0.0 % 0.0 % % % 0.0 % 0.0 %