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Fashion Forward Inc. is a clothing retailer. Below are the financial data for the last three years. Description 2021 2020 2019 Net Sales $3,500,000 $3,200,000
Fashion Forward Inc. is a clothing retailer. Below are the financial data for the last three years.
Description | 2021 | 2020 | 2019 |
Net Sales | $3,500,000 | $3,200,000 | $2,800,000 |
Cost of Goods Sold | $2,100,000 | $1,920,000 | $1,680,000 |
Gross Profit | $1,400,000 | $1,280,000 | $1,120,000 |
Operating Expenses | $700,000 | $640,000 | $560,000 |
Operating Income | $700,000 | $640,000 | $560,000 |
Interest Expense | $140,000 | $128,000 | $112,000 |
Earnings Before Tax | $560,000 | $512,000 | $448,000 |
Income Tax | $112,000 | $102,400 | $89,600 |
Net Income | $448,000 | $409,600 | $358,400 |
Requirements:
- Calculate the Gross Profit Percentage for each year.
- Determine the Operating Margin for each year.
- Compute the Net Profit Margin for each year.
- Discuss the trend in operating performance over the three years.
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