A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales,...
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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year $5,570,800 3,516,000 2,054,800 $7,330,000 4,590,000 2,740,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 1,074,500 611,000 1,381,000 710,500 2,091,500 648,500 1,685,500 369,300 84,000 Total expenses Net operating income Interest expense 102,000 $ $ 285,300 546,500 Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $261,200 when sales increased by $1,759,200. 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).) This Year Last Year Sales Cost of goods sold 0.0% Gross margin 0.0% Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses 0.0 % 0.0 % 0.0 % 0.0% Net operating income Interest expense 0.0 % 0.0% Net income before taxes
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