does this make sense : The last ratios we will examine are the profitability ratios. Since these ratios were not explained or evaluated in the first two essays, I will elaborate on them further. To determine the gross profit and gross profit percentage from the provided financial data, we start by calculating the gross profit. This is done by subtracting the cost of sales from the net sales. With net sales amounting to $642,637 and the cost of sales at $490,142, the gross profit is calculated as $642,637 minus $490,142, resulting in a gross profit of $152,495. Next, to find the gross profit percentage, we divide the gross profit by the net sales and multiply by 100 to convert it into a percentage. This calculation is performed as follows: ($152,495 divided by $642,637) multiplied by 100, which yields a gross profit percentage of approximately 23.73% in 2024. Using the same formula and inputting the information for 2023 we determined that the gross profit is $142,160 and the gross profit percentage is 23.46% .($605,881-$463,721 = $142,160 . $142,160/605,881=23.46%