A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: ...
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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
$
7,330,000
$
5,570,800
Cost of goods sold
4,730,000
3,513,000
Gross margin
2,600,000
2,057,800
Selling and administrative expenses:
Selling expenses
1,383,000
1,079,000
Administrative expenses
710,000
615,500
Total expenses
2,093,000
1,694,500
Net operating income
507,000
363,300
Interest expense
98,000
92,000
Net income before taxes
$
409,000
$
271,300
Members of the companys board of directors are surprised to see that net income increased by only $137,700 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).)
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