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The Haines Corporation shows the following financial data for 20X1 and 20X2: 20X1 20X2 Sales $ 3,050,000 $ 3,960,000 Cost of goods sold 2,150,000 2,150,000
The Haines Corporation shows the following financial data for 20X1 and 20X2:
20X1 | 20X2 | |
---|---|---|
Sales | $ 3,050,000 | $ 3,960,000 |
Cost of goods sold | 2,150,000 | 2,150,000 |
Gross profit | $ 900,000 | $ 1,810,000 |
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.
Note: Input your answers as a percent rounded to 2 decimal places.
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