A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparati

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A Comparative Income Statement Is Given Below For Mckenzie Sales Limited Of Toronto Mckenzie Sales Limited Comparati 1 (20.8 KiB) Viewed 52 times

A Comparative Income Statement Is Given Below For Mckenzie Sales Limited Of Toronto Mckenzie Sales Limited Comparati 2 (25.44 KiB) Viewed 52 times

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year $7,340,000 Sales Last Year $5,578,400 Cost of goods sold 4,690,000 3,510,500 Gross margin 2,650,000 2,067,900 Selling and administrative expenses: Selling expenses 1,370,000 1,075,500 Administrative expenses 707,000 610,000 Total expenses 2,077,000 1,685,500 573,000 Net operating income Interest expense 382,400 92,000 105,000 Net income before taxes $ 468,000 $ 290,400 Members of the company's board of directors are surprised to see that net income increased by only $177,600 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).) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % % 0.0 % % % 0.0 % 0.0 % % 0.0 % % % 0.0 % 0.0 % 0.0 % % 0.0 %