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Use the information provided in the Study Problem 6.5 in Appendix 5A of the textbook, Understanding Financial Statements, to write a 250-500-word memo to your manager, the chief operating officer of Luna Lighting. Summarize the information from the 3 years financial statements, the ratio calculations, and industry comparisons provided in the case to present possible solutions to the company's profitability problems. Be sure to conclude with projecting the future success of the company based on your findings.

5.6 Appendix 5A:

5.6 Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability. Using three years' financial statements, you have developed the following ratio calculations and industry comparisons. Based on this information, suggest possible reasons for Luna's profitability