Problem $3-7($Algo$)$ Profitability ratios $[$LO$3-2]$

The Haines Corporation shows the following financial data for $20$X$1$ and $20$X$2$:

$20$X$120$X$2$

Sales $ $3,320,000$ $ $3,040,000$

Cost of goods sold $1,710,0002,550,000$

Gross profit $ $1,610,000$ $ $490,000$

Selling & administrative expense $249,000303,000$

Operating profit $ $1,361,000$ $ $187,000$

Interest expense $40,80048,500$

Income before taxes $ $1,320,200$ $ $138,500$

Taxes $(35\%)462,07048,475$

Income after taxes $ $858,130$ $ $90,025$

For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in $20$X$2.$

Note: Input your answers as a percent rounded to $2$ decimal places.