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The following income statements were drawn from the annual report of The Western Sales Company. Year 2 Year 1 Sales 40,000 40,000 Cost of Goods
The following income statements were drawn from the annual report of The Western Sales Company.
Year 2 | Year 1 | |||||
Sales | 40,000 | 40,000 | ||||
Cost of Goods Sold | (25,000 | ) | (25,000 | ) | ||
Gross Margin | 15,000 | 15,000 | ||||
Operating Expenses | (7,000 | ) | (9,000 | ) | ||
Operating Income | 8,000 | 6,000 | ||||
Gain on the sale of land | 0 | 5,000 | ||||
Net Income | 8,000 | 11,000 | ||||
If the trends continue, investors can expect the company's net income for Year 3 to
Group of answer choices
increase
decrease.
stay the same.
move up and down.
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