Carr Auto Wholesalers had sales of $1,550,000 in 20XX, and cost of goods sold represented 78 percent of sales. Selling

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Carr Auto Wholesalers had sales of $1,550,000 in 20XX, and cost of goods sold represented 78 percent of sales. Selling and administrative expenses were 13 percent of sales. Amortization expense was $13,000 and interest expense for the year was $9,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using percentage-of-sales method. (Input all answers as positive values. Round your intermediate calculations to the nearest whole dollars.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 20XX Sales Cost of goods sold Gross profit Selling and administrative expense Amortization expense Operating profit Interest expense Earnings before taxes Taxes v Earnings after taxes 1550001 1209001 341000 201500 13000 9000

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CAR AUTO WHOLESALERS INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 20XX a Sales 1,550,000 b Cost of Goods Sold 1209000 a*78% c Gross Profit 341,000 a-b d Selling & administrative expense 201500 a*13% e Amortization Expense 13,000 f Operating Profit 126,500 c-d-e g Interest Expense 9,000 h Earnings before taxes 117,500 f - g i Taxes 35250 h * 30% j Earnings after taxes 82,250 h - i

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Carr Auto Wholesalers had sales of $1,550,000 in 20XX, and cost of goods sold represented 78 percent of sales

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CAR AUTO WHOLESALERS
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 20XX

a	Sales	1,550,000
b	Cost of Goods Sold	1209000	a*78%
c	Gross Profit	341,000	a-b
d	Selling & administrative expense	201500	a*13%
e	Amortization Expense	13,000
f	Operating Profit	126,500	c-d-e
g	Interest Expense	9,000
h	Earnings before taxes	117,500	f - g
i	Taxes	35250	h * 30%
j	Earnings after taxes	82,250	h - i