Moon Company Income Statements for the Years
Ended December 31, 2016, 2015 and 2014
2016 2015 2014
Net sales 220,000 196,000 150,000
Cost of goods sold 169,000 147,000 108,000
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Gross profit 51,000 49,000 42000
Operating expense 26,000 25,000 20,000
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Operating Profit 25,000 24,000 22,000
Income Taxes 7,800 7,500 7,000
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Net income 17,200 16,500 15,000
Using the Moon Company’s annual report, calculate any profit measures deemed necessary and discuss the implications of the profitability of the company.