BE5.13 (LO 4, 5) (Calculate amounts from statement of income and profitability ratios, and comment.) In 2024, Modder Corporation reported sales of $250,000; cost of goods sold of $137,500; operating expenses of $50,000; and income tax expense of $20,000. In 2023, it reported sales of $200,000; cost of goods sold of $114,000; operating expenses of $40,000; other income of $10,000; and income tax expense of $15,000. (a) Calculate the gross profit and net income for each year. (b) Calculate the gross profit margin and profit margin for each year. (c) Comment on Modder's changing profitability.

BE5.13 ( LO 4, 5) (Calculate amounts from statement of income and profitability ratios, and comment.) In 2024, Modder Corporation reported sales of $250,000; cost of goods sold of $137,500; operating expenses of $50,000; and income tax expense of $20,000. In 2023 , it reported sales of $200,000; cost of goods sold of $114,000; operating expenses of $40,000; other income of $10,000; and income tax expense of $15,000. (a) Calculate the gross profit and net income for each year. (b) Calculate the gross profit margin and profit margin for each year. (c) Comment on Modder's changing profitability