Express each year income statement

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Question - Common-Size Income Statement

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

McKenzie Sales, Ltd. Comparative Income Statement

 

This Year

Last Year

Sales

$7,370,00

$5,601,200

Cost of goods sold

4,610,000

3,507,000

Gross margin

2,760,000

2,094,200

Selling and administrative expenses:

 

 

Selling expenses

1,382,000

1,074,500

Administrative expenses

706,000

609,000

Total expenses

2,088,000

1,683,500

Net operating income

672,000

410,700

Interest expense

102,000

93,000

Net income before taxes

$570,000

$317,700

Members of the company's board of directors are surprised in see that net income increases by only $252,300 when sales increased by$1,768,800.

Required - Express each year's income statement in common size percentages.

Reference no: EM131593246

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