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Put your 2021 income statement next to your 2020 income statement. Answer the following questions: 2020 Income Statement Sales $210,000 COGS ($20,300) Gross Margin $189,700
Put your 2021 income statement next to your 2020 income statement. Answer the following questions:
2020 Income Statement
Sales $210,000
COGS ($20,300)
Gross Margin $189,700
SG&A ($16,400)
Net Income $173,300
2021 Income Statement
Sales $235,000
COGS ($20,300)
Gross Margin $214,700
SG&A Expense ($16,400)
Net Income $198,300
a. Is the company going in reverse or going forward?
b. If the company is going forward is it ACCELERATING (which means earnings growth)?
c. If the company is accelerating, describe HOW it is accelerating.
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