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	$	7,380,000		$	5,608,800
Cost of goods sold		4,630,000			3,509,500
Gross margin		2,750,000			2,099,300
Selling and administrative expenses:
Selling expenses		1,398,000			1,074,000
Administrative expenses		711,500			610,000
Total expenses		2,109,500			1,684,000
Net operating income		640,500			415,300
Interest expense		104,000			85,000
Net income before taxes	$	536,500		$	330,300

Members of the companys board of directors are surprised to see that net income increased by only $206,200 when sales increased by $1,771,200.

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).)