Question

Please answer
Supply the missing dollar amounts for the current year income statement of NexTech Company for each of the following independent cases. (Input all amounts as positive values.) Case D Case E Case A $ 920 Case B $ 810 320 Case C $ 590 Sales revenue Cost of goods sold 540 350 Gross margin 465 410 140 95 380 230 Selling expense Administrative expense 140 T 100 120 110 Pretax income 205 200 170 Income tax expense 40 65 35 40 65 Net income 155

Answer 1

Sales Revenue Cost of Goods Sold Selling Expense Administrative Expense Case A Case B Case C Case D Case E $ 920 $ 810 $ 590 $ 1,210 $ 760 $ 455 $ 320 $ 290 $ 540 $ 350 $ 465 $ 490 $ 300 $ 670 $ 410 $ 120 $ 140$ 95$ 380 $ 230 $ 140 $ 150 $ 100 $ 120 $ 110 $ 205 $ 200 $ 105 $ 170 $ 70 $ 50 $ 40 $ 40 $ 65 $ 35 $ 155 $ 160 $ 65 $ 105 $ 35 Income Tax Expense Net Income

Workings: For Case A: Cost of Goods Sold = Sales Revenue - Gross Margin = 920 - 465 = $ 455 Selling Expense = Gross Margin - Administrative Expense - Pretax Income = 465 - 140 - 205 = $ 120 Income Tax Expense = Pretax Income - Net Income = 205 - 155 = $ 50

For Case B: Gross Margin = Sales Revenue - Cost of Goods Sold = 810 - 320 = $ 490 Administrative Expense = Gross Margin - Selling Expense - Pretax Income = 490 - 140 - 200 = $ 150 Net Income = Pretax Income - Income Tax Expense = 200 - 40 = $ 160

For Case C: Pretax Income = Net Income + Income tax Expense = 40 + 65 = $ 105 Gross Margin = Pretax Income + Selling Expense + Administrative Expense = 105 +95 + 100 = $ 300 Cost of Goods Sold = Sales Revenue - Gross Margin = 590 - 300 = $ 290

For Case D: Net Income = Pretax Income - Income Tax Expense = 170 - 65 = $ 105 Gross Margin = Pretax Income + Selling Expense + Administrative Expense = 170 +380 + 120 = $ 670 Sales Revenue = Cost of Goods Sold + Gross Margin = 540 +670 = $1,210 For Case E: Pretax Income = Gross Margin - Selling Expesne - Administrative Expense = 410 - 230 - 110 = $ 70 Sales Revenue = Cost of Goods Sold + Gross Margin = 350 +410 = $ 760