I/S Analysis: Given this Gracenat Company income statement, answer a) and b) below.

1. What is the Sales CAGR from 2018 to 2020 and which specific expenses grew faster than Sales?
2. Net income actually improved from 2019 to 2020. Given the increase in operating expenses, this is surprising. What are the two key factors supporting net income growth.

2020 2019 2018 $ Sales 11,000 9.900 5,893 8.910 5.159 Cost of Goods Sold 8,353 3,751 42.14 4,648 42.39 1.106 4,208 42.69 574 633 990 792 624 Gross Profit Selling Expenses Administrative Expenses Depreciation Expensel Operaung income Interest Expense Tax Exp 225 693 579 1,727 16.79 2,148 21.79 1,916 21.54 0 0 766 881 1.287 13.09 Net Income 1,298 11.89 1,149 12.04