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For Following five income statement line items, calculate the percentages that would be shown in the % of net sales Round answers to 2 decimal places.

1.Cost of Sales.

2.Gross profit.

3.Selling general,and administrative expense

4.Operating earnings.

5,Net earnings

Based on your answers above, discuss which line item helped to increase operating earnings and net earningss as a % of net sales from 2016 to 2017

THE TORO COMPANY AND SUBSIDIARIES Consolidated Statements of Earnings (Dollars and shares in thousands, except per share data) Fiscal Years Ended October 31 Net sales Cost of sales 2016 S 2,505,176 S2,392.175 S 2,390,875 2017 2015 1,584,339 920,837 565,727 355,110 (19,113) 17,187 353,184 85,467 1,517,580 874,595 540,199 334,396 (19,336) 15,400 330,460 99,466 1,554,940 835,935 536,821 299,114 (18,757) 10,674 291,031 89,440 201,591 Gross profit Selling, general and administrative expense Operating earnings Interest expense Other income, net Earnings before income taxes Provision for income taxes Net earnings 267,717 S 230,994 $ Basic net eamings per share of common stock 2.47 S 2.10 $ 1.81 Diluted net earnings per share of common stock 2.41 S 2.06 $ 1.78 Weighted-average number ofshares of common stock outstanding Basic 108,312 109,834 111,130 Weighted-average number of shares of common stock outstanding - Diluted 111,252 111,987 113,514

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