Provide basic explanation

1 Profit and Loss 2 Sales 3 Direct Cost of Sales 2019 $ 1,465,915.00 $ 653,330.00 2020 $ 1,960,000.00 $1,837,000.00 2021 $4,390,000.00 $4,195,000.00 F 2022 $6,350,000.00 $6,031,000.00 $1,226,534.00 $ 653,330.00 4.50% $1,254,820.00 $ 697,000.00 37.90% $1,176,815.00 $1,632,000.00 61.10% $1,159,000.00 $2,329,000.00 55.50% 5 Total Cost of Sales 6 Gross Margin 7 Gross Margin % 8 Expenses: 9 COGS 10 Selling Expenses 11 Administrative Expenses 12 Total Operating Expenses 13 Income Before Expenses 14 Interest Expenses 15 Taxes Incurred 16 Net Profit 17 Net Profit/Sales $ 585,000.00 $ 70,500.00 $ 36,166.00 $ 106,666.00 $ 115,833.00 $ 13,500.00 $ 46,333.00 $ 69,500.00 11.40% $ 1,140,000.00 $2,562,000.00 $ 211,500.00 $ 506,000.00 $ 108,500.00 $ 208,000.00 $ 320,000.00 $ 714,000.00 $ 347,500.00 $ 864,000.00 $ 40,500.00 $ 72,000.00 $ 139,000.00 $ 336,400.00 $ 208,500.00 $ 527,600.00 11.40% 12.60% $3,702,000.00 $ 717,500.00 $ 316,500.00 $ 1,034,000.00 $1,211,500.00 $ 112,500.00 $ 475,400.00 $ 736,100.00 17.60%