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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales,...

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Accounting

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,300,000 $ 5,548,000 Cost of goods sold 4,770,000 3,510,000 Gross margin 2,530,000 2,038,000 Selling and administrative expenses: Selling expenses 1,395,000 1,078,000 Administrative expenses 707,000 616,000 Total expenses 2,102,000 1,694,000 Net operating income 428,000 344,000 Interest expense 104,000 90,000 Net income before taxes $ 324,000 $ 254,000 Members of the companys board of directors are surprised to see that net income increased by only $70,000 when sales increased by $1,752,000. 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).)

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