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Print Question 3 Partially correct Mark 1.23 out of 16.00 P Flag question Edit question Reformulating Financial Statements For Warranty Expense Income statement data for Whirlpool Industries from the company's 2016 financial statements follow. Use these data to reformulate the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant percentage of revenue across all three years. Specifically, compute the adjustments to: warranty expense, income tax expense, and net income. The company's tax rate is 30%. 12 Months Ended ($ millions) Dec 31, 2016 Dec. 31, 2015 Dec. 31, 2014 $22.273 $22.446 $21,427 Warranty expense 281 525 287 Net sales Compute the average warranty expense to net sales rate over the past three years. Round answer to two decimal places (ex: 0.02345 = 2.3596) 1.65 96 Using your rounded answer, compute the adjusted warranty expense for each year. Round answers to one decimal place. Use a negative sign to indicate if the adjustment decreases an account balance. Income Statements Adjustments Adjusted warranty expense Adjustment required to warranty expense 2015 525 x $ 2014 287 X S 2016 368 X $ (87) X (26.1) x (60.9) X 67.1 x Income tax expense 154.1 x 46.2 X 107.9 X (20.1) X (46.9) X Net Income