Exercise 6-16 (Algo) Calculate levels of profitability for a multiple- step income statement and the gross profit ratio (LO6-2, 6-7) Below are amounts found in the income statements of three companies. Cost of Goods Operating Nonoperating Income Ta Company Net Sales Sold Expenses Expenses Henry $36,000 $12,600 $5,200 $2,200 Expense $2,200 Grace 39,000 26,130 13,300 7,200 0 James 44,000 25,960 3,200 0 3,200 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?