Compute four ratios that measure ability to earn profits for PGI Decor Inc., whose comparative income statement follows:

Using the information provided, calculate the information that would be relevant in deciding whether the company's operating performance improved or deteriorated during 2020.

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1 PGI Decor Inc. Comparative Income Statement For the Years Ended December 31, 2020 and 2019 B C D 2 (in thousands) 2020 2019 3 Net sales $174.000 $ 158.000 4 Cost of goods sold 93,000 86,000 5 Gross profit 81,000 72,000 6 Selling and general expenses 46,000 41,000 7 Income from operations 35,000 31,000 8 Interest expense 9,000 10,000 9 Income before income tax 26,000 21,000 10 Income tax expense 9,000 8,000 11 Net income $17,000 $13,000 12