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	$	7,310,000		$	5,555,600
Cost of goods sold		4,730,000			3,508,000
Gross margin		2,580,000			2,047,600
Selling and administrative expenses:
Selling expenses		1,392,000			1,076,000
Administrative expenses		711,500			615,000
Total expenses		2,103,500			1,691,000
Net operating income		476,500			356,600
Interest expense		99,000			88,000
Net income before taxes	$	377,500		$	268,600

Members of the companys board of directors are surprised to see that net income increased by only $108,900 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 (i.e., 0.1234 should be entered as 12.3).)