Problem
CarTrax, Inc. has the following operating incomes:
|
|
2017
|
2016
|
|
Net sales
|
897,000
|
747,000
|
|
COGS
|
767,000
|
637,000
|
|
Gross margin
|
130,000
|
110,000
|
|
SG&A
|
92,000
|
82,000
|
|
Operating Income
|
38,000
|
28,000
|
• Create a trend analysis of the income statements (calculate the year-to-year amount and percent change for each of the line items). What does the trend analysis tell you about the company?