Income Statement Sales Revenue Cost of Goods Sold $125,000 $114,000 58,000 54,000 Gross Profit Operating Expenses Interest Expense 67,000 40,500 3,500 60,000 37,500 3,500 Income before Income Tax Expense Income Tax Expense (30%) 23,000 6,900 19,000 5,700 Net Income $ 16,100 $ 13,300 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 47,742 $ 14,350 32,000 39,500 32,500 33,000 85,000 95,000 Total Assets $ 197,242 $181,850 Accounts Payable Income Tax Payable Note Payable, Long-Term $ 33,792 $ 28,900 950 450 35,000 35,000 Total Liabilities Contributed Capital (9,050 shares) Retained Earningst 69,742 90,500 37,000 64,350 90,500 27,000 Total Liabilities and Shareholders Equity $ 197,242 $ 181,850 One-half of all sales are on credit. Touring 2017, cash dividends amounting to $6,100 were declared and paid. Required: 1-a. Compute the gross profit percentage in 2017 and 2016. (Round your answers to 1 decimal place.) Gross Profit Percentage % % 2017 2016 1-b. Is the trend going in the right direction? No Yes