Moon Company Income Statements for the Years

Ended December 31, 2016, 2015 and 2014

2016 2015 2014

Net sales 220,000 196,000 150,000

Cost of goods sold 169,000 147,000 108,000

__________________________________________

Gross profit 51,000 49,000 42000

Operating expense 26,000 25,000 20,000

__________________________________________

Operating Profit 25,000 24,000 22,000

Income Taxes 7,800 7,500 7,000

________________________________________

Net income 17,200 16,500 15,000

Using the Moon Companys annual report, calculate any profit measures deemed necessary and discuss the implications of the profitability of the company.