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  3. a comparative income statement is given below for

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: ...

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Accounting

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
This Year Last Year
Sales $ 7,320,000 $ 5,563,200
Cost of goods sold 4,770,000 3,516,000
Gross margin 2,550,000 2,047,200
Selling and administrative expenses:
Selling expenses 1,387,000 1,081,500
Administrative expenses 706,500 617,500
Total expenses 2,093,500 1,699,000
Net operating income 456,500 348,200
Interest expense 98,000 89,000
Net income before taxes $ 358,500 $ 259,200

Members of the companys board of directors are surprised to see that net income increased by only $99,300 when sales increased by $1,756,800.

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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