Calculate the missing income statement items for Exercise 9, CVS Caremark; Exercise 10, AutoZone; and Exercise 11, PetSmart. Complete each company's column; then move on to the next column.
THE INCOME STATEMENT
Company Year Ended | AutoZone December 31,2014 (in thousands) |
Revenue | $9,475,313 |
Cost of Goods Sold | ___________ |
Gross Margin | 4,934,907 |
Operating Expenses | 3,104,684 |
Income before Taxes | ___________ |
Income Tax* | ___________ |
Net Income (loss) | 1,069,744 |
*Also includes interest expense and other income and losses.
To calculate: The cost of goods sold, income before taxes and income tax of AutoZone if gross margin is
Given Information:
AutoZoneâ€™s gross margin is
The Income Statement | |
Company Year Ended | AutoZone December 31,2014 (in thousands) |
Revenue | |
Cost of Goods Sold | _________ |
Gross Margin | |
Operating Expenses | |
Income before Taxes | _________ |
Income Tax | ________ |
Net Income(loss) |
Formula used:
The gross margin is computed by subtracting cost of goods sold from total revenue.
The equation can be reformed to compute the cost of goods sold
The income before taxes is computed by subtracting total operating expense from gross margin.
The net income (loss) is computed by subtracting income tax from income before taxes
The equation can be reformed to compute income tax.
Calculation:
Consider AutoZoneâ€™s gross margin is
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