P4-6A Profitability and the income statement. Presented below is income statement data for short and company as of year-end 2019:

income tax expense.... $5,400

Cost of goods sold.....$14,300

Other expenses....$500

Net revenue.....$62,950

Operating expenses................................$27,000

Required

Prepare a multi-step income statement for 2019 and calculate the company's return on sales ratio. If Short's return on sales was 16 percent in 2018, is the company's profitability improving or declining?