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Use the following information to analyze the ABC Company. Analyze sales for 2015, 2016, and 2017.

1. Use the following information to analyze the ABC Company. 

a.      Analyze sales for 2015, 2016, and 2017.

b.      Calculate any profit measures deemed necessary and discuss the profitability of the company.


ABC Company

Income Statements

           For the Years Ended Dec. 31, 2017, 2016 and 2015


                                                                                               2017                2016              2015

           Net sales                                                                     $174               $167               $160

           COGS                                                                          (114)               (115)               (120)

           Gross profit                                                                  $ 60                $ 52                $40

           General and administrative expenses                               (54)                (46)               (34)

           Operating profit                                                           $   6                $   6                 $ 6

           Interest expense                                                                (1)                 (1)                  (1)

           Gain from sales of assets                                                        -                      10                    -

            Income taxes                                                                    (2)                 (6)                    (2)

           

            Net income                                                                  $   3               $   9                     $3

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