What is income after taxes and the profit margin

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Reference no: EM131991192

Diagnostics Corp's income statement for 2013 is as follows

sales.....2,790,000

cost of goods sold....1,790,000

Gross Profit....1,000,000

Selling and administrative expense.....302,000

Operatinh Profit.....698,000

Interest Expense.....54,800

income before taxes.....643,200

Taxes (30%)....192,960

Income Before Taxes 450,240

A. Compute the Profit margin in 2013

B. Assume 2014, sales increase by 10 percent and cost of goods sold increase by 20 percent. The firm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 2014?

Reference no: EM131991192

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