Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: $ 2,380,000 1,450,000 $930,000 331,000...

 

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Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: $ 2,380,000 1,450,000 $930,000 331,000 $ 599,000 59,900 $539,100 161,730 $ 377,370 Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. Profit margin 15.86 % b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2? Note: Input the profit margin as a percent rounded to 2 decimal places. Income after taxes Profit margin 20X2 % Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: $ 2,380,000 1,450,000 $930,000 331,000 $ 599,000 59,900 $539,100 161,730 $ 377,370 Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. Profit margin 15.86 % b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2? Note: Input the profit margin as a percent rounded to 2 decimal places. Income after taxes Profit margin 20X2 %

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a Profit margin Net Income after taxes sales 37737023... View the full answer