Income Statement Relations
Selected income statement information for Novo Limited (Novo), a Hong Kong personal computer manufacturer, for the years ended March 31, Years 9 and 10 appears below. Novo applies Hong Kong financial reporting standards and reports its results in thousands of U.S. dollars. In answering this question, assume Novo uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.
|
|
Year 10
|
Year 9
|
|
Revenue
|
$16,351,503
|
$13,978,309
|
|
Cost of Goods Sold
|
13,901,523
|
12,091,433
|
|
Selling and Administrative Expenses
|
1,103,713
|
1,033,296
|
|
Gross Profit
|
?
|
?
|
|
Profit Before Taxes
|
?
|
?
|
|
Advertising
|
595,902
|
488,150
|
|
Research and Development
|
229,759
|
196,225
|
|
Other Income
|
?
|
18,130
|
|
Income Tax Expense
|
47,613
|
26,197
|
|
Net Income
|
484,708
|
?
|
Compute the missing amounts for Year 9 and Year 10.
| Novo Limited |
| Income Statement |
| For the Years Ended March 31 |
| |
Year 10 |
Year 9 |
| Sales |
$16,351,503 |
$13,978,309 |
| Cost of Goods Sold |
13,901,523 |
12,091,433 |
| Gross Profit |
$ |
$ |
| Selling and Administrative Expense |
1,103,713 |
1,033,296 |
| Advertising Expense |
595,902 |
488,150 |
| Research and Development Expense |
229,759 |
196,225 |
| Other Income (Expense) |
|
18,130 |
| Profit Before Taxes |
$ |
$ |
| Income Tax Expense |
47,613 |
26,197 |
| Net Income |
$484,708 |
$ |