please answer the questions using the diagram.

1. Net sales $ _Cost of Goods Sold $ 2. How are the Gross Profits calculated? 3. How are Total Operating Expenses calculated? 4. In your opinion after looking at the the Net Income after Taxes as a percentage of Gross Sales, is this a profitable enough business to buy? Explain 5. What would be a way to make the business more profitable? An income statement summarizes a firm's revenues and expenses during a specified accounting period. For Northeast Art Supply, net income after taxes is $30,175. NORTHEAST ART SUPPLY, INC Income for the Year Ended December 31, 2006 $65.000 Revenues Gros Le return and Les courte Net $ 500 14.000 5451.000 $10,000 55.000 Cost of goods sold Beginning eventory January 1, 2016 Purch Les purchase our Net Durch Cost of goods we torse Last ending to December 31, 2006 Cost of goods Gross profit 235.000 1375.000 41.000 334.000 $117.000 $ 22.000 4.000 2.500 3.000 Operating pense Selling op Adering Sale promotion Depronto Deprecation- Misongen Total Grape Once Het Decio-um 4.000 100 5200 1.500 2.500 1300 12:30 huone Miscellaneous Totale per Totaling en Net income from Lastes NET INCOME BEFORE TAKES La decor NET INCOME AFTER TAKES 10500 5 37.500 2.000 5 35.500 5235