CASE CHALLENGE 6. For every 30 cents received from Gross Profits, the Industry generates $1.00 in Net Sales. You calculate Living Earth's Gross Profits relationship to Net Sales (show work) and report your comparison of Living Earth to the Industry. 1 Living Earth, LLC 2 Case Challenge 3 This do-over offer is for anyone interests. 4 Review grading rubric=) 5 S 2013 57.823 41,049 16,774 COMPANY DATA 2013 2014 100.0% $ 62,823 71.0% S 37,694 29.0% S 25.129 2014 100% 60% 40% INDUSTRY INDUSTRY 2013 2014 100% 100% 40% 3596 30% $ 13,906 24.0% $ 15,906 25% 15% S 10% 6 7 Net sales 8 Cost of goods sold 9 Gross profit Advertising/Overhead Expenses 10 (Advertising is 30% of Overhead) 11 Operating profits 12 Interest expense 13 Interest income 14 Profits before tax 15 Income taxes 16 Net profits 17 18 19 2,868 1,071 20 1,817 754 1.063 5.0% $ 1.9% S 0.0% S 3.1% S 1.3% S 1.8% $ 9,223 2,029 SO 7,244 1.222 6,022 15% 396 0% 12% 29 1096 $ S 596