Exercise 16-1 (Algo) Common-Size Income Statement (LO16-1) 1 A comparative Income statement is given below for McKenzie Sales, Ltd., of Toronto: 0.8 points Last Year $5,593,600 3,514,000 2,079,600 Skipped Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,360,000 Cost of goods sold 4,600,000 Gross margin 2,760,000 Selling and administrative expenses: Selling expenses 1,384,000 Administrative expenses 708,500 Total expenses 2,092,500 Net operating income 667,500 Interest expense 105,000 Net income before taxes $ 562,500 eBook 1,075,000 614,000 1,689,000 390,600 88,000 302,600 References Members of the company's board of directors are surprised to see that net income increased by only $259,900 when sales increased by $1,766,400. Required: 1. Express each year's Income statement in common-size percentages. (Round your percentage answers to 1 decimal place (1.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales % 0.0 % 0.0 % % % 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 %