Reference no: EM131498135

Question: A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,370,000 $ 5,601,200 Cost of goods sold 4,610,000 3,507,000 Gross margin 2,760,000 2,094,200 Selling and administrative expenses: Selling expenses 1,382,000 1,074,500 Administrative expenses 706,000 609,000 Total expenses 2,088,000 1,683,500 Net operating income 672,000 410,700 Interest expense 102,000 93,000 Net income before taxes $ 570,000 $ 317,700 Members of the company's board of directors are surprised to see that net income increased by only $252,300 when sales increased by $1,768,800. 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).