Exercise 14-1 Common-Size Income Statement (L014-1) A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,555,600 3,512,500 2,043, 100 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,310,000 Cost of goods sold 4,590,000 Gross margin 2.720.000 Selling and administrative expenses Selling expenses 1,383,000 Administrative expenses 706,000 Total expenses 2,089,000 Net operating incomo 631,000 Interest expense 102,000 Net income before taxes 5 529,000 1,078,000 608,500 1,586,500 356, 600 85,000 $ 271,600 Members of the company's board of directors are surprised to see that net income increased by only $257,400 when sales increased by $1754,400. 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 % % 0.01% % 0.0 % % 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 Not Income before taxes % 0.0 % 0.0 % % % 0.01% 0.01% % 0,0% % 0.0 %