Respuesta :
It is impossible to ascertain whether the net income raised, dropped, or remained unchanged throughout the course of these three years unless we know the non-operating charges for each year.
What is deemed to be income?
Generally, anything you receive in exchange for personal services must be included in your gross income. Along with wages, bonuses, commissions, fees, and gratuities, this also includes other types of pay, like stock options and fringe benefits.
Briefing :
The cost of products sold is subtracted from sales to determine gross profit.
By deducting operating costs from gross profit, operational income is calculated.
Operating income is reduced by any non-operating costs (such as taxes or interest expense) to get at net income.
Based on the facts given, we can determine the net earnings for each year as follows:
Current year:
Sales: 100.0%
Cost of goods sold: 63.2%
Operating expenses: 14.4%
Gross profit: 100.0% - 63.2% = 36.8% Operating income: 36.8% - 14.4% = 22.4%
Net income: 22.4% - any non-operating expenses
1 year ago:
Sales: 100.0%
Cost of goods sold: 61%
Operating expenses: 13.9%
Gross profit: 100.0% - 61% = 39% Operating income: 39% - 13.9% = 25.1%
Net income: 25.1% - any non-operating expenses
2 years ago:
Sales: 100.0%
Cost of goods sold: 57.4%
Operating expenses: 14.2%
Gross profit: 100.0% - 57.4% = 42.6% Operating income: 42.6% - 14.2% = 28.4%
Net income: 28.4% - any non-operating expense
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