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Industrial Manufacturing Ltd. reports the following financial data for the past three years. Description 2021 2020 2019 Sales $18,000,000 $17,500,000 $17,000,000 Cost of Goods Sold

Industrial Manufacturing Ltd. reports the following financial data for the past three years.

Description

2021

2020

2019

Sales

$18,000,000

$17,500,000

$17,000,000

Cost of Goods Sold

$10,800,000

$10,500,000

$10,200,000

Gross Profit

$7,200,000

$7,000,000

$6,800,000

Operating Expenses

$3,600,000

$3,500,000

$3,400,000

Operating Income

$3,600,000

$3,500,000

$3,400,000

Interest Expense

$720,000

$700,000

$680,000

Earnings Before Tax

$2,880,000

$2,800,000

$2,720,000

Tax Expense

$576,000

$560,000

$544,000

Net Income

$2,304,000

$2,240,000

$2,176,000

Requirements:

  1. Calculate the Gross Profit Margin 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 profitability over the three years.

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