Income statement formats. Information from Cemex, S.A.B.’s income statements for the years ended December 31, 2006 and 2007, is shown in the following display. Cemex is a Mexican construction firm that applies Mexican accounting standards and reports its results in millions of pesos ($).

Cemex, S.A.B. Income Statement Data December 31, 2006 and 2007

December 31

2007

2006

Net Sales

$236,669

$213,767

Cost of Sales

157,696

?

Gross Profit

?

77,320

Administrative and Selling Expenses

33,120

28,588

Distribution Expenses

13,405

?

Other Expenses, net

3,281

580

Operating Income

?

33,925

Financial Expenses

8,809

?

Financial Income

862

536

Income (Expense) from Financial Instruments

2,387

(161)

Other Financial Income (Expense)

6,647

4,905

Equity in Income of Associates

1,487

1,425

Profit Before Income Tax

?

34,845

Income Tax

?

?

Consolidated Profit

?

?

Portion of Profit Attributable to Minority Interest

837

?

Portion of Profit Attributable to Cemex Shareholders

?

27,855

Assume Cemex had an effective tax rate of 15.11% in 2007, and 16.35% in 2006.

a. Compute the missing amounts for each of the two years.

b. Prepare, in good format, an income statement for Cemex for 2006 and 2007 assuming the firm applies IFRS.