Ratios (Appendix) Miller Company's condensed income statement for 2016 and December 31, 2016, balance sheet follow: Income Statement Sales (net) $304,400 Cost of goods sold (183,600) Gross profit $120,800 Operating expenses (82,000) Operating income $38,800 Interest expense (7,000) Income before income taxes $31,800 Income taxes (10,000) Net income 21,800