   Chapter 15, Problem 4AT ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Prepare the following statements on separate sheets of paper.Calculate the missing balance sheet items for Exercise 1, Hershey Co. and exercise 2, Lowe’s, Inc. Complete each company’s column; then move on to the next column.THE BALANCE SHEET (in millions) Company Year Ended Advance Auto Parts December 31,2013 Revenue _____ Cost of Goods Sold 3,242 Gross Margin _____ Operating Expenses 626 Income before Taxes Income Tax* _____ Net Income (loss) 392 * Also includes interest expense and other income and losses.

To determine

To calculate: The revenue, operating expense and income tax of Advance Auto Parts if gross margin is $3,252, cost of goods sold is$3,242, net income (loss) is $392 and income before taxes is$626.

Explanation

Given Information:

It is given that Advance Auto Part’s gross margin is $3,252, cost of goods sold is$3,242, net income (loss) is $392 and income before taxes is$626.

Formula used:

The gross margin is computed by subtracting cost of goods sold from total revenue,

Gross margin=Total revenueCost of goods sold

The equation can be reformed to compute the total revenue,

Total revenue=Cost of goods sold+Gross margin

The income before taxes is computed by subtracting total operating expense from gross margin,

Income before taxes=Gross marginTotal operating expense

The equation can be reformed to compute the operating expense,

Total operating expense=Gross marginIncome before taxes

The net income (loss) is computed by subtracting income tax from income before taxes,

Net income(loss)=Income before taxesIncome tax

This equation can be reformed to compute income tax,

Income tax=Income before taxesNet income(loss)

Calculation:

Consider Advance Auto Part’s gross margin is $3,252, cost of goods sold is$3,242, net income (loss) is $392 and income before taxes is$626

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### Find more solutions based on key concepts 