Question: Selected comparative financial statements of Sugo Company follow
SUGO COMPANY
Comparative Income Statements
For Years Ended December 31, 2012-2006
($ thousands) 2012 2011 2010 2009 2008 2007 2006
Sales . . . . . . . . . . . . . . . . . . . . . $1,594 $1,396 $1,270 $1,164 $1,086 $1,010 $828
Cost of goods sold . . . . . . . . . 1,146 932 802 702 652 610 486
Gross profit . . . . . . . . . . . . . . . 448 464 468 462 434 400 342
Operating expenses . . . . . . . . 340 266 244 180 156 154 128
Net income . . . . . . . . . . . . . . . $ 108 $ 198 $ 224 $ 282 $ 278 $ 246 $214
Required: 1. Compute trend percents for all components of both statements using 2006 as the base year. (Round percents to one decimal.)
Analysis Component
2. Analyze and comment on the financial statements and trend percents from part 1.