Dreamscape, Inc. For the Year Ended December 31, 2012 74.5% 25.5 8.0 Industry Average For the Year Ended December 31, 2013 70.0% 30.0 7.0 5.1 Ratio % of Sales) Cost of goods sold Gross profits Selling expense Gen. & admin. expense Deprecation expense Total operating expense Operating profits Interest expense Net profits before taxes Taxes Net profits after taxes 100 13.9 16.1 1.0 15.1 6.0 9.1 5.2 Income Statement, Dreamscape, Inc. $1,000,000 750.000 $ 250,000 For the Year Ended December 31, 2013 Sales revenue Less: Cost of goods sold Gross profits Less Operating expenses Selling Expense Gen. & admin expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less Taxes Net profits after taxes S $ 70,000 48,000 20.000 128 OOO 112,000 20000 92.000 68 55,200 Required: Evaluate the company's performance against industry average ratios and against last year's results. Show all computations