Prepare an income statement through gross

$*$P$5\mathrm{.}7($LO $5,7),$ AN Zhou Inc. operates a retail operation that purchases and sells snowmobiles, among

other outdoor products. The company purchases all inventory on credit and uses a periodic inventory

system. The Accounts Payable account is used for recording inventory purchases only; all other current

liabilities are accrued in separate accounts. You are provided with the following selected information for

the fiscal years $2025$ through $2028,$ inclusive.

a$.$ Calculate the missing amounts. Assume that there are no nonoperating activities.

b$.$ Sales declined over the $3-$year fiscal period, $2026-2028.$ Does that mean that profitability necessarily

also declined? Explain, computing the gross profit rate and the profit margin $($Net income $$ Net

sales revenue$)$ for each fiscal year to help support your answer. $($Round to one decimal place.$)$