Exercise 14-1 Common-Size Income Statement (L014-1) A comparative Income statement is given below for McKenzie Sales, Ltd. of Toronto: Last Year $5,563,200 3,506,500 2,056,700 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,320,000 Cost of goods sold 4,770,000 Gross margin 2,550,000 Selling and administrative expenses: Selling expenses 1,389,000 Administrative expenses 704,000 Total expenses 2.093,000 Net operating income 457,000 Interest expense 100,000 Net income before taxes $ 357,000 5 1,073,000 615,500 1,688,500 368,200 85,000 $ 283,200 Members of the company's board of directors are surprised to see that net income increased by only $73,800 when sales increased by $1,756,800 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie.. 0.1234 should be entered as 12.3).) This Year Last Year % % % % % % Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expenso Net Income before taxes % % % % % % % % % %