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AP-7A LO 4 5 Presented below is the comparative income statement of Newton Company for 2018 and 2017 2017 $108,345 65,007 43,338 Newton Company Income
AP-7A LO 4 5 Presented below is the comparative income statement of Newton Company for 2018 and 2017 2017 $108,345 65,007 43,338 Newton Company Income Statement For the Year Ended December 31 2018 Sales $194,890 Cost of Goods Sold 116,934 Gross Profit 77,956 Operating Expenses Administrative Expense 12,000 Selling Expense Expense 22,540 Total Operating Expenses 34,540 Other Income and Expenses Interest Expense 1,248 Income before Income Tax Expense 42,168 Income Tax Expense 12,650 Net Income $29,518 8,000 13,627 21,627 580 21,131 6,339 $14,792 Required a) Calculate the following ratios for both years. 2018 2017 Net Profit Margin Times Interest Earned Ratio b) In which year does the company have a better performance with respect to the ratios calculated in part a)? Explain
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