Toby Corporation reported the following operating results for two consecutive years. (15 pts)

	2015	2016	Percentage Change
Sales Cost of goods sold Gross margin Operating expenses Income before taxes Income taxes Net income	460,000 264,000 196,000 75,000 121,000 55,000 66,000	400,000 254,000 146,000 65,000 81,000 31,600 49400

1. Compute the percentage changes in Toby Corporation's income statement components for two years.
2. Comment on apparent trends revealed by the percentage changes in letter a.