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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:

  1. Calculate the Gross Profit Percentage for each year.
  2. Determine the Operating Margin for each year.
  3. Compute the Net Profit Margin for each year.
  4. Discuss the trend in operating performance over the three years.

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