A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,300,000 $ 5,548,000 Cost of goods sold 4,620,000 3,515,500 Gross margin 2,680,000 2,032,500 Selling and administrative expenses: Selling expenses 1,392,000 1,074,500 Administrative expenses 705,500 609,000 Total expenses 2,097,500 1,683,500 Net operating income 582,500 349,000 Interest expense 104,000 92,000 Net income before taxes $ 478,500 $ 257,000 Members of the company’s board of directors are surprised to see that net income increased by only $221,500 when sales increased by $1,752,000. 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))
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,300,000 $ 5,548,000 Cost of goods sold 4,620,000 3,515,500 Gross margin 2,680,000 2,032,500 Selling and administrative expenses: Selling expenses 1,392,000 1,074,500 Administrative expenses 705,500 609,000 Total expenses 2,097,500 1,683,500 Net operating income 582,500 349,000 Interest expense 104,000 92,000 Net income before taxes $ 478,500 $ 257,000 Members of the company’s board of directors are surprised to see that net income increased by only $221,500 when sales increased by $1,752,000. 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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