E12-23A. (Learning Objective 4: Analyzing profitability) Compute four ratios that measure the ability profits for Harper Decor, Inc., whose comparative Income Statements follow: to earn A1 A B Harper Decor, Inc. Comparative Income Statements Years Ended December 31, 20X6 and 20X5 1 20X6 20X5 120,000 $ 64,000 56,000 Net sales S 100,000 52,000 48,000 18,000 30,000 2,000 28,000 8,000 20,000 3 Cost of goods sold Gross profit Selling and general expenses Income from operations Interest expense Income before income tax 10 Income tax expense. 11 Net income 12 4 21,000 35,000 4,000 31,000 10,000 21,000 $ 6 7 Additional data: 20X6 20X4 20X5 Total assets. $104,000 $100,000 $83,000 Ordinary shareholders' equity $ 72,000 $ 70,000 $ 2,000 $69,000 $1,000 Preference dividends.. 3,000 Ordinary shares outstanding during the year $ 10,000 $ $4,000 9,000 Did the company's operating performance improve or deteriorate during 20X6