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Following is the Operating Statement for Silhouette Brands, Inc. I've added three columns of percentages to give you more data to consider as you evaluate the Operating Statement. Keep in mind the following: Demonstrate the depth and breadth of your knowledge and understanding of the material. A discussion of the material, not one or two word answers, is what is expected and upon what you will be graded. minimum of 3-5 sentences each.

	2016 (current year)		2015 (prior year)
	$	% of Sales	$	% of Sales	% change
Net sales	62349545		26072585		139.1%
Cost of Goods Sold	51402174	82.4%	21010605	80.6%	144.6%
Gross Profit	10947371	17.6%	5061980	19.4%	116.3%
Advertising	1818126	2.9%	327479	1.3%	455.2%
General & Administrative	8067331	12.9%	4162408	16.0%	93.8%
Total Operating Exp	9885457	15.9%	4489887	17.2%	120.2%
Income from Operations	1061914	1.7%	572093	2.2%	85.6%
Interest Income	17977	0.0%	16237	0.1%	10.7%
Gain on Marketable Securities		0.0%	41962	0.2%	-100.0%
Interest Expense	-2400	0.0%	-3184	0.0%	-24.6%
Total Other	15577	0.0%	55015	0.2%	-71.7%
Income Before Taxes	1077491	1.7%	627108	2.4%	71.8%
Taxes	536143	0.9%	161000	0.6%	233.0%
Net Income	541348	0.9%	466108	1.8%	16.1%

Answer the following questions in your evaluation:

1. What was the percentage increase in sales from 2015 to 2016?
2. What impact did the new sales have on the gross profit?
3. Were the new sales more or less profitable sales based upon their impact on the gross profit?
4. What happened to the advertising expenses ($ & %)?
5. Is the change in advertising likely to be long term? Why?
6. What impact did the new sales have on G&A (General & Administrative)? Why?
7. Are total operating expenses up or down as a percentage?
8. What impact does the change in operating expenses have on the bottom line?
9. Is income from operations up or down ($ & %)?
10. Is total other a significant dollar amount? Percentage increase?
11. Look at the amount of taxes paid. Why is the change so significant?
12. Compare the increases in sales to the increase in profit after taxes. Was it worth it from an operations point of view? From the stockholders point of view?

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