Marilyn Terill is the senior auditor for the audit of Uden Supply Company for the year ended December 31,204. in planning the audit. Marlyn is attempting to develop expectations for planning analytical procedures based on the financial information for prior years and her knowledge of the business and the industry, including these: 1. Based on economic conditions, she belleves that the increase in sales for the current year should approximate the historical trend in terms of actual dollar increases. 2. Based on her knowledge of industry trends, she belleves that the gross profit percentage for 204 should be about 2 percent less than the percentage for 203. 3. Based on her knowiedge of regulations, she is aware that the effective tax rate for the company for 204 has been reduced by 5 percent from that in 203. 4. Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company's line of credit for 204 was approximately 12 percent. The average outstanding balance of the line of credit is $2,300,000. This line of credit is the company's only interest-beating debt 5. Based on her discussions with management and her knowledge of the industry, she believes that the amount of other expenses should be consistent with the trendis from prior years. Comparatve income statement information for Uden Supply Company is presented in the below table. Required: b. Determine the expected amounts for 204 for each of the income statement items. (Round gross profit ratio and income toxes retio to nearest four decimal pleces. Round other ratios to nearest two decimal places. Round all other intermediate computations to the neorest whole volue. Enter your answers in thousonds.) Comparative income statement information for Uden Supply Company is presented in the below table. Required: b. Determine the expected amounts for 204 for each of the income statement items. (Round gross profit ratio and income taxes rotio to neorest four decimal ploces. Round other ratios to neorest two decimal places. Round all other intermediate computations to the nearest whole value. Enter your onswers in thousonds.) Comparative Income Statements Years Ended December 20X1, 20X2, and 203 (Thousands) c. Uden's unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 204. (Enter your answers in thousands.)