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Question - Toby Corporation reported the following operating results for two consecutive years.
2015
2016
Sales
460,000
400,000
Cost of goods sold
264,000
254,000
Gross margin
196,000
146,000
Operating expenses
75,000
65,000
Income before taxes
121,000
81,000
Income taxes
55,000
31,600
Net income
66,000
49,400
1. Compute the percentage changes in Toby Corporation's income statement components for two years.
2. Comment on apparent trends revealed by the percentage changes in letter a.
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Urban Athletics Company has two store locations, North and South. During October, the company reported net income of $192,000 on sales of $905,000.
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