Problem 3-7 (Algo) Profitability ratios [LO3-2] The Haines Corporation shows the following financial data for 20X1 and 20X2: 20X2 $ 3,990,000 2,320,000 $ 1,670,000 284,000 $ 1,386,000 45,200 $ 1,340,800 469,280 $ 871,520 Sales Cost of goods sold Gross profit Selling & administrative expense Operating profit Interest expense Income before taxes Taxes (35%) Income after taxes For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places. a. Cost of goods sold to sales b. Selling and administrative expense to sales c. Interest expense to sales 20X1 $ 3,200,000 1,790,000 $ 1,410,000 250,000 $ 1,160,000 48,500 $ 1,111,500 389,025 $ 722,475 + 20X1 % % % 20X2 % % % Profitability

Problem 3-7 (Algo) Profitability ratios [LO3-2] The Haines Corporation shows the following financial data for 201 and 202 : For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 202 Note: Input your answers as a percent rounded to 2 decimal places