please complete it

Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20x4. In planning the audi Marilyn 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 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 a review of the general ledger, she determined that average depreciable assets have increased by 10 percent. Purchases of equipment occurred relatively evenly throughout the year 5. 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 credit is $2.700.000. This line of credit is the company's only interest-bearing debt. 6. 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 20X4 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.) Required: b. Determine the expected amounts for 20x4 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.) UDEN SUPPLY COMPANY Comparative Income Statements Years Ended December 20X1, 20X2, and 20X3 Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 20x4 Expected 9.900 11.000 12,100 $ 13.200 6,830 7,600 8,380 3,070 3,400 3.720 13.200 690 850 198 220 240 1,081 1.106 1.131 188 196 204 171 178 185 64 69 74 Sales Cost of goods sold Gross profit Sales commissions Advertising Salaries Payroll taxes Employee benefits Rent Depreciation Supplies Utilities Legal and accounting Miscellaneous Interest expense Net income before taxes 770 64 71 78 30 25 38 16 258 247 42 35 52 26 36 30 45 21 276 382 86 296 288 515 income taxes 56 191 116 399 $ 0 Net income Prey 1 of 1 Next