company net sales cost of goods sold operating expenses nonoperating expenses income tax expense henry $42,000 $10,500 $5,500 $2,500 $2,500 grace 45,000 29,700 16,600 7,500 0 james 50,000 29,000 3,500 0 3,500 required: 1. for each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. for each company, calculate the gross profit ratio. 2-b. which company has the most favorable ratio?