1. Income Statement Issues

2. Questions What can be done to improve profits?

3. Profitability

4. Income Statement

5. Implications/Conclusions A slight increase in Net Sales can result in a huge increase in Operating Profits Gross Profit Margin is way below industry standards

6. Recommendations Increase Sales Increase Gross Profit Margins Reduce Cost of Goods Sold Kennon, J. (2009). Calculating gross profit margin. In About.com. Retrieved August 7, 2009, from http://beginnersinvest.about.com/cs/investinglessons/l/blgrossmargin.htm http://beginnersinvest.about.com/cs/investinglessons/l/blgrossmargin.htm