Reference no: EM13599027

Use the following income statements.

LOCKEY FENCING CORPORATION

• Income Statements
• For the Years Ended December 31
• 2010 2009
• Net sales $ 100,000 $ 75,000
• Cost of goods sold 58,000 45,000

Gross profit 42,000 30,000
Selling, general, and administrative expenses 9,000 4,500

Income from operations 33,000 25,500
Interest expense 3,000 3,750

Income before income tax 30,000 21,750
Income tax expense 9,000 6,525

Net income $ 21,000 $ 15,225

(a)Calculate Net profit margin and Gross profit percentage. (Round your net profit margin answers to 1 decimal place. Omit the "%" sign in your response.)

• 2010 2009
• Net profit margin % %
• Gross profit percentage % %