Analyze the income statement for 2003, 2004, & 2005 shown below to illustrate how financial analysts evaluate and analyze the income statement.

2003 2004 2005

Operating Income $52,000 59,000 76,000

Operating profit Margin 15.29% 16.39% 17.88%

Interest Expense 12,000 15,000 20,000

Income Before Taxes 40,000 44,000 56,000

Income Taxes 13,000 14,000 15,000

Net Income 27,0000 30,000 41,000

Net profit Margin 7.94% 8.33% 9.65%