1. Singular Corp. has the following income statement data:
|
2006
|
2007
|
|
Sales
|
$500,000
|
$700,000
|
|
Gross profit
|
161,300
|
205,000
|
|
Selling and administrative expense
|
45,200
|
74,300
|
|
Interest expense
|
15,200
|
29,100
|
|
Net income (after these and other expenses)
|
44,100
|
45,600
|
a. Compute the ratio of each of the last four items to sales for 2006 and 2007.
b. Based on your calculations, is the company improving or declining in its performance?