a. Gross income = sales - COGS
Pretax = gross income - SG$A expense +operating income + non operating income- interest expense - unusual expense
income taxes = Pretax - net income
income statement 20162015201420132012
sale 5938755355558705270853341
COGS 2342520651205222141820507
gross earnings 3596234704353483129032834
SG&A EXPENSE 2114919835196931872918117
operating income 1481314869156551256114717
non operating income 533 -51 224 595463
interest expense 733 337 192 24490
unusual expense 1677269 -114 301 217
pretax 2774929081314562517229590
income taxes 1743317661197521555218585
Net income 103161142011704962011005
b. Average tax rate = total taxes / total taxable income ( for this calculation we need the tax table for identifying the correct tax brackets for each taxable income falling on it.
2016 2015 2014 2013 2012
gross profit margin 0.61% 0.63% 0.63% 0.59% 0.62%
net profit margin 0.17 % 0.21% 0.21% 0.18% 0.21
%
c. is attached
d.income statement 20162015201420132012
sale 100 100 100 100 100
COGS 39.44%37.31%36.73%40.64%38.45%
gross earnings 60.56%62.69%63.27%59.36%61.55%
SG&A EXPENSE 35.61%35.83%35.25%35.53%33.96%
operating income 24.94%26.86%28.02%23.83%27.59%
non operating expense 0.90%-0.09%0.40%1.13%0.87%
interest expense 1.23%0.61%0.34%0.46%0.17%
unusual expense 2.82%0.49%-0.20%0.57%0.41%
pretax 46.73%52.54%56.30%47.76%55.47%
income taxes 29.35%31.90%35.35%29.51%34.84%
Net income 17.37%20.63%20.95%18.25%20.63%
Explanation:
gross profit margin = gross profit/ sales
net profit margin = net profit / sales
no c is an attachment