1. Use the following information to analyze the ABC Company.

a.Analyze sales for 2015, 2016, and 2017.

b.Calculate any profit measures deemed necessary and discuss the profitability of the company.

ABC Company

Income Statements

For the Years Ended Dec. 31, 2017, 2016 and 2015

2017 20162015

Net sales$174$167$160

COGS(114) (115) (120)

Gross profit $ 60$ 52$40

General and administrative expenses(54)(46)(34)

Operating profit$6$6$ 6

Interest expense(1)(1)(1)

Gain from sales of assets-10-

Income taxes(2)(6) (2)

Net income $3$9 $3