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. Company Henry Net Sales. Cost of Goods Sold Operating $40,000 $16,000 Grace 43,000 James 48,000 27,950 27,360 Expenses $5,400 16,500 3,400 Nonoperating Expenses $2,400 Income Tax Expense $2,400 7,400 e 0 3,400 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-6. 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, and (d) net income. (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 Req 2b For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Henry Grace James Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b Which company has the most favorable ratio? Which company has the most favorable ratio?