Using the excerpt from the Moon Company's annual report, calculate any profit measures deemed necessary and discuss the implications of the profitability of the company.

Moon Company Income Statements for the Years Ended December 31, 2016, 2015 and 2014 2016 2015 2014 Net sales Cost of goods sold Gross profit Operating expenses Operating profit Income taxes Net income $220,000 $196,000 $150,000 169,000 47,000 108,000 $51,000 49,000 $ 42,000 26,000 25,000 20,000 $25,000 S 24,000 $ 22,000 7,800 7,500 7,000 $17,200 S 16,500 $15,000