Analyzing Profitability The following information was included in the most recent president’s letter to the stockholders of Westwind Company.

Westwind continues its record of successful operations with net income of $1,375,000 in 2001 on sales of $19,650,000. Sales in 2001 were 10 percent higher than last year and 15 percent higher than in 1999. Westwind also has continued to enlarge its operations. Total assets in 2001 were $22,750,000, a $5,000,000 increase from the previous year and an $11,000,000 increase from 1999. Westwind’s net income in 2000 and 1999 was $1,300,000 and $1,380,000, respectively.

a. Prepare a table that shows sales, net income, and total assets of Westwind for each of the three years.

b. Compute Westwind’s net income as a percent of sales and of total assets for each of the three years.

c. Do you agree with Westwind’s president that operating results have improved over the three-year period? Explain.