Requirement 2. To an investor, how does 2018 compare with 2017 explain your reasoning.

An investor would be ____ (pleased/ disappointed) with 2018 in comparision with 2017. Cost of goods sold and selling and general expenses-the two largest expenses-consumed ___ (smaller/ higher) percentages of net revenue in 2018 and net income represents a ___ (higher/ smaller) percentage of revenues. Overall, profits are ___ (rising/declining)

(Appendix D problem 1)

ent Data Table Harlan Designs, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 432,000 $ 371,000 Expenses: Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 201,550 186,250 98,650 91,000 4,000 306,950 281,250 $ 125,050 $ 89,750 6,750 Net Income Print Done