Problem $3-6($Algo$)$ Profitability ratios $[$LO$3-2]$ Problem $3-6($Algo$)$ Profitability ratios $[$LO$3-2]$

Dr$.$ Zhiv$$go Diagnostics Corporation's income statement for $201$ is as follows:

a$.$ Compute the profit margin for $20$X$1.$

Note: Input the profit margin as a percent rounded to $2$ decimal places.

Profit margin

b$.$ Assume that in $202,$ sales increase by $10$ percent and cost of goods sold

increases by $20$ percent. The firm is able to keep all other expenses the same.

Assume a tax rate of $30$ percent on income before taxes. What is income after taxes

and the profit margin for $202?$

Note: Input the profit margin as a percent rounded to $2$ decimal places.

Dr$.$ Zhiv$$go Diagnostics Corporation's income statement for $201$ is as follows:

a$.$ Compute the profit margin for $201.$

Note: Input the profit margin as a percent rounded to $2$ decimal places.

Profit margin

b$.$ Assume that in $202,$ sales increase by $10$ percent and cost of goods sold

increases by $20$ percent. The firm is able to keep all other expenses the same.

Assume a tax rate of $30$ percent on income before taxes. What is income after taxes

and the profit margin for $20$X$2?$

Note: Input the profit margin as a percent rounded to $2$ decimal places.