Below are amounts found in the income statements of three companies.

Company	Net Sales	Cost of Goods Sold	Operating Expenses	Nonoperating Expenses	Income Tax Expense
Henry	$22,000	$4,400	$4,500	$1,500	$1,500
Grace	25,000	18,500	7,500	3,500	0
James	30,000	19,800	2,500	0	2,500

Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio?