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	$	7,390,000		$	5,616,400
Cost of goods sold		4,730,000			3,506,500
Gross margin		2,660,000			2,109,900
Selling and administrative expenses:
Selling expenses		1,382,000			1,076,000
Administrative expenses		710,500			612,000
Total expenses		2,092,500			1,688,000
Net operating income		567,500			421,900
Interest expense		100,000			87,000
Net income before taxes	$	467,500		$	334,900

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	0.0	%	0.0	%
Selling and administrative expenses:
Selling expenses		%		%
Administrative expenses		%		%
Total selling and administrative expenses	0.0	%	0.0	%
Net operating income	0.0	%	0.0	%
Interest expense		%		%
Net income before taxes	0.0	%	0.0	%

Answer 1