Quick Ratio Smith and Sons, Inc. Income Statement (in millions) Net sales Cost of goods sold Gross profit 2016 2015 10,700 10,200 (5,500) (5,200) 5,200 5,000 Selling and administrative expenses (2,800) (2,700) Income from operations 2,400 2,300 Interest expense (300) (250) Income before income taxes 2,100 2,050 Income tax expense (420) (400) Net income 1,680 1,650