Following is a comparative income statement for McKenzie Sales, Ltd., of Toronto:

Sales McKenzie, Ltd. Comparative Income Statement
	This year			Last year
Sales	ps	7,370,000		ps	5,601,200
cost of goods sold		4,610,000			3.507.000
Gross margin		2,760,000			2,094,200
Selling and administration expenses:
selling expenses		1,382,000			1,074,500
administrative expenses		706,000			609,000
Total expenses		2,088,000			1,683,500
operating margin		672,000			410,700
Interest expenses		102,000			93,000
Net income before taxes	ps	570.000		ps	317,700

The company's board members are surprised to see that net income increased only $252,300 when sales increased $1,768,800.

Required:
1.	Express the income statement for each year in percentages of common size.

Answer rating: 100% (QA)

To express the income statement for each year in percentages of common size we need to calculate the ... View the full answer