McKenzie Sales, Limited Comparative Income Statement ...
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Accounting
McKenzie Sales, Limited Comparative Income Statement
This Year
Last Year
Sales
$ 7,340,000
$ 5,578,400
Cost of goods sold
4,610,000
3,510,500
Gross margin
2,730,000
2,067,900
Selling and administrative expenses:
Selling expenses
1,387,000
1,074,000
Administrative expenses
709,500
611,000
Total expenses
2,096,500
1,685,000
Net operating income
633,500
382,900
Interest expense
102,000
89,000
Net income before taxes
$ 531,500
$ 293,900
Members of the companys board of directors are surprised to see that net income increased by only $237,600 when sales increased by $1,761,600.
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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