Winthrop Corporation reported the following operating results for two consecutive years:
_____________________2018 2017 Percentage Change
Sales......................... $1,200,000.... $1,000,000
Cost of goods sold......... 720,000........ 640,000
Gross margin.............. $ 480,000 ......$ 360,000
Operating expenses......... 200,000........ 160,000
Income before taxes...... $ 280,000...... $ 200,000
Income taxes.................. 56,000......... 40,000
Net income................ $ 224,000...... $ 160,000
Required
a. Compute the percentage changes in Winthrop Corporation's income statement components between the two years. Round percentages to one decimal point.
b. Comment on apparent trends revealed by the percentage changes computed in Requirement a.