Analyzing Gateway, Inc. Examine the Consolidated Income Statements of Gateway, Inc., in Appendix A and answer the following questions:

a. What was the percentage change in net sales in the two most recent years?

b. What was the percentage change in cost of goods sold in the two most recent years? Did cost of goods sold increase more rapidly or less rapidly than net sales during the past two years?

c. What was the percentage change in earnings before income taxes during the past two years? Have earnings increased more rapidly or less rapidly than net sales?

d. What was the percentage change in basic earnings per share during the past two years? Has earnings per share increased more rapidly or less rapidly than net sales?

e. Would you consider purchasing shares of Gateway if you had money available for investment? What other information about Gateway might you wish to collect before purchasing Gateway shares?