Chapter 15, Problem 4AT

BuyFind*arrow_forward*

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

Explanation

**Given Information:**

It is given that Advance Auto Partâ€™s gross margin is

**Formula used:**

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

The equation can be reformed to compute the total revenue,

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

The equation can be reformed to compute the operating expense,

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

This equation can be reformed to compute income tax,

**Calculation:**

Consider Advance Auto Partâ€™s gross margin is

Sect-15.I P-1TIESect-15.I P-2TIESect-15.I P-3TIESect-15.I P-1RESect-15.I P-2RESect-15.I P-3RESect-15.I P-4RESect-15.I P-5RESect-15.I P-6RESect-15.I P-7RE

Sect-15.I P-8RESect-15.I P-9RESect-15.I P-10RESect-15.I P-11RESect-15.I P-12RESect-15.I P-13RESect-15.I P-14RESect-15.I P-15RESect-15.I P-16RESect-15.I P-17RESect-15.I P-18RESect-15.I P-19RESect-15.I P-20RESect-15.I P-21RESect-15.I P-22RESect-15.I P-23RESect-15.I P-24RESect-15.I P-25RESect-15.I P-26RESect-15.I P-27RESect-15.I P-28RESect-15.I P-29RESect-15.I P-30RESect-15.I P-31RESect-15.I P-32RESect-15.I P-33RESect-15.I P-34RESect-15.I P-35RESect-15.II P-4TIESect-15.II P-5TIESect-15.II P-6TIESect-15.II P-1RESect-15.II P-2RESect-15.II P-3RESect-15.II P-4RESect-15.II P-5RESect-15.II P-6RESect-15.II P-7RESect-15.II P-8RESect-15.II P-9RESect-15.II P-10RESect-15.II P-11RESect-15.II P-12RESect-15.II P-13RESect-15.II P-14RESect-15.II P-15RESect-15.III P-7TIESect-15.III P-8TIESect-15.III P-1RESect-15.III P-2RESect-15.III P-3RESect-15.III P-4RESect-15.III P-5RESect-15.III P-6RESect-15.III P-7RESect-15.III P-8RESect-15.III P-9RESect-15.III P-10RESect-15.III P-11RESect-15.III P-12RESect-15.III P-13RESect-15.III P-14RESect-15.III P-15RESect-15.III P-16RESect-15.III P-17RESect-15.III P-18RESect-15.III P-19RESect-15.III P-20RESect-15.III P-21RESect-15.III P-22RESect-15.III P-23RESect-15.III P-24RESect-15.III P-25RESect-15.III P-26RESect-15.III P-27RESect-15.III P-28RESect-15.III P-29RESect-15.III P-30RESect-15.III P-31RESect-15.III P-32RESect-15.III P-33RECh-15 P-1CRCh-15 P-2CRCh-15 P-3CRCh-15 P-4CRCh-15 P-5CRCh-15 P-6CRCh-15 P-7CRCh-15 P-8CRCh-15 P-9CRCh-15 P-10CRCh-15 P-11CRCh-15 P-12CRCh-15 P-13CRCh-15 P-14CRCh-15 P-1ATCh-15 P-2ATCh-15 P-3ATCh-15 P-4ATCh-15 P-5ATCh-15 P-6ATCh-15 P-7ATCh-15 P-8ATCh-15 P-9ATCh-15 P-10ATCh-15 P-11ATCh-15 P-12ATCh-15 P-13ATCh-15 P-14ATCh-15 P-15ATCh-15 P-16ATCh-15 P-17ATCh-15 P-18ATCh-15 P-19ATCh-15 P-20ATCh-15 P-21ATCh-15 P-22ATCh-15 P-23ATCh-15 P-24AT

Elementary Technical Mathematics

Finite Mathematics

Understanding Basic Statistics

Essentials Of Statistics

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Elementary Geometry For College Students, 7e

Intermediate Algebra

Mathematical Excursions (MindTap Course List)

Single Variable Calculus: Early Transcendentals, Volume I

Mathematical Applications for the Management, Life, and Social Sciences

Statistics for The Behavioral Sciences (MindTap Course List)

Multivariable Calculus

Calculus: Early Transcendental Functions

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Applied Calculus

Calculus (MindTap Course List)

Calculus: Early Transcendentals

Finite Mathematics and Applied Calculus (MindTap Course List)

Probability and Statistics for Engineering and the Sciences

Precalculus: Mathematics for Calculus (Standalone Book)

Single Variable Calculus

Calculus: An Applied Approach (MindTap Course List)

Calculus: Early Transcendental Functions (MindTap Course List)

Calculus of a Single Variable

Elements Of Modern Algebra

Trigonometry (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Study Guide for Stewart's Multivariable Calculus, 8th

Finite Mathematics for the Managerial, Life, and Social Sciences

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Elementary Geometry for College Students

Statistics for Business & Economics, Revised (MindTap Course List)

College Algebra (MindTap Course List)

Multivariable Calculus

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Calculus (MindTap Course List)

Mathematics For Machine Technology

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Research Methods for the Behavioral Sciences (MindTap Course List)