Chihooly Glass Products Ltd. is a leading provider of bottles for the brewing industry. Suppose the company recently reported these figures:

Required
Evaluate Chihooly Glass's operations during 2017 in comparison with 2016. Consider sales, gross margin, operating income, and net income. In the annual report, Chihooly Glass's management describes the restructuring charges in 2017 as a one-time event that is not expected to recur. How does this additional information affect your evaluation?

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CHIHOOLY GLASS PRODUCTS LTD Income Statement For the Years Ended December 31,2017, and 2016 (amounts in thousands) 2017 Sales Cost of sales Gross margin Costs and expenses $135,000 97,200 37,800 2016 $103,000 77,700 25,300 Selling, general, and administrative Amortization Restructuring charges 27,800 2,750 19,050 49,600 (11,800) (800) 21,100 1,170 Operating income (loss) Other items (summarized) Net income (loss) 22,270 3,030 (1,700) $ 1,330 $ (12