Chihooly Glass Products Ltd. is a leading provider of bottles for the brewing industry. Suppose the company recently reported these figures.

Required
Evaluate Chihooly Glass's operations during 2014 in comparison with 2013. Consider sales, gross margin, operating income, and net income. In the annual report, Chihooly Glass's management describes the restructuring charges in 2014 as a one-time event that is not expected to recur. How does this additional information affect your evaluation?

Transcribed Image Text:

CHIHOOLY GLASS PRODUCTS LTD. Income Statement For the Years Ended December 31, 2014 and 2013 (amounts in thousands) 2014 $135,000 97,200 37,800 2013 $103,000 77,700 25,300 Sales Cost of sales Gross margin Costs and expenses Selling, general, and administrative 27,800 2,750 9,050 39,600 21,100 1,170 Amortization Restructuring charges 22,270 Operating income (loss) Other items (summarized) (1,800) (800) $ (2,600) 3,030 (1,700) $ 1,330 Net income (loss)