PAC 8.4 Tax Accounting: Interpret Descriptive and Diagnostic Analytics Data Tax Accounting Orthos management would like to identify potential opportunities for cost savings. One aspect of purchasing costs that management has not yet considered is sales tax paid on purchases. Management has requested an analysis of sales tax paid by site. As a staff tax accountant for Ortho, you have prepared the following trend analysis of sales tax paid by location. A vertical bar and line graph is titled, Ortho Incorporated Sales Tax Analysis. The vertical axis on the left labeled, Taxes in Thousands, ranges from $0 to $400,000,000, in increments of $50,000,000. The vertical axis on the right labeled, Tax Rate in Percent, ranges from 0.00 to 10.00%, in increments of 1.00. The horizontal axis labeled, State, ranges from left to right as follows: California, Florida, Illinois, New York, and Texas. The key notes below read: Purchases, Sales Tax Paid, and Tax Rate. The data for bars representing, Purchases, are plotted as follows: California, $330,000,000; Florida, $350,000,000; Illinois, $365,000,000; New York, $350,000,000; Texas, $360,000,000. The data for bars representing, Sales Tax Paid, are plotted as follows: California, $30,000,000; Florida, $25,000,000; Illinois, $30,000,000; New York, $25,000,000; Texas, $30,000,000. A line representing, Tax Rate, is plotted at the points as follows: California, 8.68%; Florida, 7.50%; Illinois, 8.80%; New York, 8.52%; Texas, 8.19%. All values are approximate. Prepare an interpretation of the analysis. Is this analysis sufficient or will you need additional analyses? Create additional analyses of results by year