Reference no: EM13843346

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	$