Sales
Cost of goods sold
Gross profit
Selling & administrative expense
Operating profit
Interest expense
Income before taxes
Taxes (35%)
Income after taxes
20x1
\$ 3,440,000
\$ 2,160,000
\$ 1,280,000
\$ 479,000
\$ 781,000
\$ 47,100
\$ 733,900
\$ 256,865
\$ 477,035
20x2
\$ 2,810,000
\$ 2,290,000
\$ 520,000
\$ 237,400
\$ 283,000
\$ 53,700
\$ 179,300
\$ 62,765
\$ 116,545
For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2
Note: Input your answers as a percent rounded to 2 decimal places.
a. Cost of goods sold to sales
b. Selling and administrative expense to sales
c. Interest expense to sales
20X1
20X2
Profitability