Exercise 6-16 (Algo) Calculate levels of profitability for a multiple-step income statement and t profit ratio (LO6-2, 6-7) Below are amounts found in the Income statements of three companies. Company Net Sales Cost of Goods Sold Operating Henry Grace $16,000 19,000 $3,200 12,350 Expenses $4,200 7,200 Nonoperating Expenses Income Tax Expense $1,200 $1,200 3,200 e Janes 24,000 13,680 2,200 e 2,200 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, an (Negative amounts should be indicated by a minus sign.). Gross Profit Operating Income Income Before Income Taxes Net Income/ Loss Henry Grace James Req 1 Req 2a > Hint Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b Print 0 erences For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Henry Grace James Req 1 Req 2a Req 2b Which company has the most favorable ratio? Which company has the most favorable ratio? < Req 2a Req 2b