Income statement relations. Selected income statement information for Lenovo Group Limited (Lenovo), a Hong Kong personal computer manufacturer, for two recent years appears in the following display, based on Lenovo’s financial statements for the year ended March 31, 2008. Lenovo applies Hong Kong financial reporting standards and reports its results in thousands of U.S. dollars. In answering this question, assume Lenovo uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter.
|
2008 |
2007 |
|
|
Sales |
$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 Expenses |
595,902 |
488,150 |
|
Research and Development Expense |
229,759 |
196,225 |
|
Other Income (Expense) |
? |
18,130 |
|
Income Tax Expense |
47,613 |
26,197 |
|
Net Income |
484,708 |
? |
Compute the missing amounts for 2007 and 2008.