Following is an income statement for Crystal Corporation. Calculate three ratios that indicate efficiency and interpret the results.
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Crystal Corporation |
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Sales revenue |
$50,000 |
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Less: Cost of goods sold |
25,000 |
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Gross profit |
$25,000 |
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Other operating expenses: |
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Advertising |
$3,000 |
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Utilities |
3,500 |
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Wages |
2,500 |
9,000 |
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Operating income |
$16,000 |
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Less: Income taxes |
5,600 |
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Net income |
$10,400 |
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