An excerpt from the Sun Company's annual report is presented below. Calculating any profit measures deemed necessary, discuss the implications of the profitability of the company.
Sun Company Income Statements for the Years Ended December 31, 2013, 2012, and 2011
|
|
2013
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2012
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2011
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|
Net sales
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$236,000
|
$195,000
|
$120,000
|
|
Cost of goods sold
|
186,000
|
150,000
|
85,000
|
|
Gross profit
|
$ 50,000
|
$ 45,000
|
$ 35,000
|
|
Operating expenses
|
22,000
|
18,000
|
11,000
|
|
Operating profit
|
$ 28,000
|
$ 27,000
|
$ 24,000
|
|
Income taxes
|
12,000
|
11,500
|
10,500
|
|
Net income
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$ 16,000
|
$ 15,500
|
$ 13,500
|