Hammond corporation reported the following operating

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Reference no: EM13574770

Hammond Corporation reported the following operating results for two consecutive years.


2008

2007

Percentage Change

Sales

$1,250,000

$1,000,000


Cost of goods sold

750,000

600,000


Gross margin

500,000

400,000


Operating expenses

300,000

200,000


Income before taxes

200,000

200,000


Income taxes

61,000

53,000


Net income

$ 139,000

$ 147,000


Required

a. Compute the percentage changes in Hammond Corporation's income statement components between the two years.

b. Comment on apparent trends disclosed by the percentage changes computed in Requirement a.

Reference no: EM13574770

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