Exercise 15-1 common-size income statement [lo15-1] a comparative income statement is given below for mckenzie sales, ltd., of toronto: mckenzie sales, ltd. comparative income statement this year last year sales $ 7,360,000 $ 5,593,600 cost of goods sold 4,730,000 3,516,000 gross margin 2,630,000 2,077,600 selling and administrative expenses: selling expenses 1,380,000 1,073,500 administrative expenses 704,000 617,000 total expenses 2,084,000 1,690,500 net operating income 546,000 387,100 interest expense 98,000 93,000 net income before taxes $ 448,000 $ 294,100 members of the company’s board of directors are surprised to see that net income increased by only $153,900 when sales increased by $1,766,400. 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.