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Financial Statement Mini-Case Instructions: Apply accounting formulas to the values provided from the Balance Sheet & the Income Statement of Reinwald Fabrics, Inc. In answering the two questions below, show all formulas and calculations and use quantitative results to support your answers Rachal Reinwald is the principal stockholder and president of Reinwald Fabrics, Inc., which wholesales fine tapestries to retail stores. Because Reinwald was not satisfied with company earnings in 2013, she raised prices in 2014, increasing gross margin from sales from 30 percent in 2013 to 35 percent in 2014 Reinwald is pleased that net income went up from 2013 to 2014, as shown in the comparative income statements provided below 2014 2013 Revenues: Net Sales $1,222,600 $1,386,400 Costs and Expenses Cost of goods sold Selling and administrative expenses Total costs and expenses 794,690 970,480 305,800 $1,103,088 $1,276,280 s 119,512 110,120 28,000 $ 82,120 308,398 Income before income taxes Incomes taxes Net income 30,000 $ 89,512 Total assets for Reinwald Fabrics, Inc., at year end for 2012, 2013, and 2014 were $1,246,780, $1,386,810, and $1,536,910, respectively 1. Has Reinwald Fabric's profitability really improved? Please explain your answer. 2. What factors has Reinwald overlooked in evaluating the profitability of the company

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