Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how can I figure out the profit before taxes and the other missing numbers for year 4 with the information given below? I already figured
how can I figure out the profit before taxes and the other missing numbers for year 4 with the information given below?
I already figured out the average for the previous years but I am stuck where the blanks are.
Selected income statement items are shown for Astrotech Company. Compute the missing amounts for each of the four years. What basic accounting equation did you apply in making your calculations? (Hint: To estimatethe Year 4 missing numbers, compute the typical percentage each expense item is of sales for Year 1 to 3 and apply the percentage figure for each expense items to Year 4's sales). | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | ||||
Sales | $12,011 | $5,984 | $11,545 | $10,000 | |||
Cost of goods sold | 3,011 | 2,992 | 2,886 | 2,500 | |||
Gross margin | $9,000 | $8,976 | $8,659 | $7,500 | |||
Other expenses | $6,201 | $6,429 | $6,296 | ||||
Profit before taxes | 2,799 | 509 | 2,363 | ||||
Tax Expense | 1,120 | 1,019 | 945 | ||||
Net Income | $1,679 | $1,528 | $1,418 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started