Analysis of Profitability Based on the financial statements of Cowan Kitchen Counters, Inc., as shown below: Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) Cost of goods sold Gross profit Operating expenses Other expense (interest) Income tax expense Net income $2,573,400 1,855,800 $717,600 313,300 24,200 173,200 $206,900 $2,160,700 1,618,200 $542,500 219,000 24,200 104,500 $194,800 Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 $258,100 $246,000 Cash Government notes Accounts receivable (net) 246,700 246,700 901,300 797,800