A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,400,000 4,730,000 2,670,000 1,393,000 711,000 2,104,000 566,000 104,000 $ 462,000 Last Year $ 5,624,000 3,513,000 2,111,000 1,074,500 608,500 1,683,000 428,000 90,000 $ 338,000 The company's board of directors is surprised to see net income increased by only $124,000 when sales increased by $1,776,C Required: 1. Express each year's income statement in common-size percentages. Note: 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 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,400,000 4,730,000 2,670,000 1,393,000 711,000 2,104,000 566,000 104,000 $ 462,000 Last Year $ 5,624,000 3,513,000 2,111,000 1,074,500 608,500 1,683,000 428,000 90,000 $ 338,000 The company's board of directors is surprised to see net income increased by only $124,000 when sales increased by $1,776,C Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.13MCE

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