The following information was developed from the financial statements of Donelson, Inc. At the beginning of 2021, the company's former supplier went bankrupt, and the company began buying merchandise from another supplier. 2021 2020 Gross profit on sales $ 1,008,000 $ 1,134,000 Income before income tax 230,400 252,000 Net income 172,800 189,000 Net income as a percentage of net sales 6.0 % 7.5 %

Required: a. Compute the net sales for each year.

b. Compute the cost of goods sold in dollars and as a percentage of net sales for each year.

c. Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes expense is not an operating expense.)

d. Prepare a condensed comparative income statement for 2020 and 2021. Include the following items: net sales, cost of goods sold, gross profit, operating expenses, income before income tax, income taxes expense, and net income. Omit earnings per share statistics.

e. identify the significant favorable and un-favourable trends in the performance of Donelson, Inc. comment on any unusual changes