Profitability and the Income Statement Presented below is income statement data for Longo & Company as of year-end 2016:

Income Tax Expense	$5,400
Cost of Goods Sold	14,300
Other Expenses	900
Net Revenue	58,500
Operating Expenses	27,000

Required Prepare a multi-step income statement for 2016.

Do not use negative signs with your answers.

Calculate the company's return on sales ratio. Round the return on sales ratio to one decimal place.

If Longo's return on sales was 16 percent in 2015, is the company's profitability improving or declining?

LONGO &COMPANY Income Statement 2016 Gross Profit on Sales Operating Income Income before Income Taxes Net Income