company a income statement for the years ended december 31 year increase (decrease) year 2 year 1 amount % net sales $19,100,000 $15,800,000 cost of goods sold 13,064,400 7,189,000 gross profit 6,035,600 8,611,000 operating expenses 1,680,800 1,264,000 depreciation expense 1,069,600 1,069,600 inventory write-down 267,400 loss (litigation) 1,585,300 347,600 income before tax 1,432,500 5,929,800 income tax expense 515,700 2,085,600 net income $916,800 $3,844,200