Wilson Distributors is a provider of automotive products. The company recently reported the following:

Required
Evaluate Wilson Distributors' operations during 2014 in comparison with 2013. Consider sales, gross margin, operating income, and net income. Track the gross margin percentage and inventory turnover in both years. Wilson Distributors' inventories at December 31, 2014, 2013, and 2012, were $92,000, $145,000, and $122,000, respectively.
In the annual report, management describes the restructuring charges in 2014, the costs of downsizing the company, as a one-time event. How does this additional information affect your evaluation?

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WILSON DISTRIBUTORS Consolidated Statements of Operations (Adapted) For the Years Ended July 31, 2014 and 2013 2013 2014 Sales $1,320,000 $984,000 Cost of sales 980,000 752,000 Gross margin 232,000 340,000 Cost and expenses: Selling, general, and administrative 264,000 204,000 21,000 Amortization 34,000 Restructuring charges 84,000 225,000 382,000 Operating income (loss) (42,000) 7,000 Other items (summarized) (7,000) (16,000) $ (49,000) $ (9,000) Net income (loss)