Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20X4. In planning the audit, Marilyn is attempting to develop expectations for planning analytical procedures based on the financial infermation for prior years and her knowledge of the business and the industry, including these: 1. Based on economic conditions, she believes 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 believes that the gross profit percentage for 20X4 should be about 2 percent less than the percentage for 20X3. 3. Based on her knowledge of regulations, she is aware that the effective tax rate for the company for 20X4 has been reduced by 5 percent from that in 20X3. 4 Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company's line of credit for 20X4 was approximately 12 percent. The average outstanding balance of the line of creditis $3,600,000. This line of credit is the company's only interest-bearing 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 trends from prior years. 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 ratio to nearest four decimal places. Round other ratios to nearest two decimal places. Round all other intermediate computations to the nearest whole value. Enter your answers in thousands.) Sales Cost of goods sold 8,690 9330 Gross profit 3910 4170 Sales commissions 880 950 Advertising 252 270 2f | Salaries 1,126 1,160 1194 Payroll taxes 197 203 2000 | Employee benefits 180 186 1wl Rent 73 77 sif Depreciation 73 77 sif Supplies 28 43 af ] Utilities 34 38 2 | Legal and accounting 47 51 55 Miscallaneous 25 29 f | Interest expense 366 384 s/ | Net income before taxes 618 702 sooff Income taxes 139 158 18 | Net income 479 544 g0, ] . Uden's unaudited financial statements for the current year show a 3076 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 20X4. (Enter your answers in thousands.)