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Use the following income statements. LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 Current Net Sales $ 100,000 100.0% Cost of Goods
Use the following income statements. LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 Current Net Sales $ 100,000 100.0% Cost of Goods Sold 58,000 58.0 Gross Profit 42,000 42.0 Selling, General, and Administrative 9,000 9.0 Expenses Income from Operations 33,000 33.0 Interest Expense 3.000 3.0 Income before Income Tax 30,000 30.0 Income Tax Expense 9,000 9.0 Net Income $ 21,000 21.0% Previous $ 75,000 100.0% 45,000 60.0 30,000 40.0 4,500 6.0 25,500 3.750 21,750 6,525 15,225 34.0 5.0 29.0 8.7 20.3% $ a. Which of the ratios from Exhibit 13.5 have been included in these calculations? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.) 7 Net Profit Ratio 7 Cost of Goods Sold 2 Gross Profit Ratio Selling, General, and Administrative Expenses Income from Operations Interest Expense Income before Income Tax 2 Income Tax Expense Profibility Ratio b. Have these two ratios improved or deteriorated in the current year compared to the previous year? Improved Deteriorated
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