Question
The Haines Corporation shows the following financial data for 20X1 and 20X2: sales $3,050,000 $3,960,000 Cost of goods sold $2,150,000 $2,150,000 Selling & administrative expense
The Haines Corporation shows the following financial data for 20X1 and 20X2: sales $3,050,000 $3,960,000 Cost of goods sold $2,150,000 $2,150,000 Selling & administrative expense $269,000 $253,000 Operating profit $631,000 $1,557,000 Interest expense $48,700 $49,200 Income before taxes $582,300 $1,507,800 Taxes (35%) 203,805 527,730 Income after taxes $378,495 $980,070. 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. A. Cost of goods sold to sales B. Selling and administrative expenses to sales C. Interest expense to sales
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