Question
The Haines Corp. shows the following financial data for 20X1 and 20X2. 20X120X2Sales$3,200,000$3,990,000Cost of goods sold1,790,0002,320,000Gross profit$1,410,000$1,670,000Selling & administrative expense250,000284,000Operating profit$1,160,000$1,386,000Interest expense48,50045,200Income before taxes$1,111,500$1,340,800Taxes (35%)389,025469,280Income
The Haines Corp. shows the following financial data for 20X1 and 20X2.
20X120X2Sales$3,200,000$3,990,000Cost of goods sold1,790,0002,320,000Gross profit$1,410,000$1,670,000Selling & administrative expense250,000284,000Operating profit$1,160,000$1,386,000Interest expense48,50045,200Income before taxes$1,111,500$1,340,800Taxes (35%)389,025469,280Income after taxes$722,475$871,520
For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2.(Input your answers as a percent rounded to 2 decimal places.)
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