There is no Part (a) need to be completed. The above is the completed question, only part (b) need to be answered.

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 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 2. Based on her knowledge of industry trends, she believes that the gross profit percentage for 20X4 should be 3. Based on her knowledge of regulations, she is aware that the effective tax rate for the company for 20X4 has been 4. Based on a review of the general ledger, she determined that average depreciable assets have increased by 10 5. Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company's historical trend. about 2 percent less than the percentage for 20X3. reduced by 5 percent from that in 20X3 percent. Purchases of equipment occurred relatively evenly throughout the year 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 the advertising and sales commission percentages are expected to stay the same. Based on 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 UDEN SUPPLY COMPANY Comparative Income Statements Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 Audited Audited Audited Expected 20X2 20x3 20x4 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 9,900 6, 830 3,070 690 198 1,081 188 64 64 30 25 38 16 258 247 56 191 11,000 7,600 3,400 770 220 1,106 196 178 69 71 36 30 12,100 8,380 3,720 850 240 1,131 204 185 74 78 42 35 52 26 288 515 116 399 21 276 382 86 296 Net income before taxes Income taxes Net income 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 20X4 (Thousands) 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 Income taxes Net income