come statement data for Whirlpool Industries follow. just the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant 1.547% of net sales for each yea $ millions 2016 2015 et sales arranty expense 2014 $26,566 $26,296 $25,524 414 361 438 termine the adjusted warranty expense for each year. und answers to one decimal. $ millions 2016 2015 2014 djusted warranty expense $ 410.97 $ 406.79 $ 394.85
come statement data for Whirlpool Industries follow. just the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant 1.547% of net sales for each yea $ millions 2016 2015 et sales arranty expense 2014 $26,566 $26,296 $25,524 414 361 438 termine the adjusted warranty expense for each year. und answers to one decimal. $ millions 2016 2015 2014 djusted warranty expense $ 410.97 $ 406.79 $ 394.85
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9.
Please answer all the tables in their entirely
Transcribed Image Text:Adjusting Income Statements For Warranty Expense
Income statement data for Whirlpool Industries follow.
Adjust the income statement for 2014, 2015, and 2016 under the assumption that warranty expense is a constant 1.547% of net sales for each year. The company's tax rate is 30%.
$ millions
Net sales
Warranty expense
2016
2015
2014
$26,566 $26,296 $25,524
414
361
438
Determine the adjusted warranty expense for each year.
Round answers to one decimal.
$ millions
2016
2015
2014
Adjusted warranty expense $
410.97 $
406.79 $
394.85
Determine the income statement adjustments for each year.
• Round answers to one decimal.
• Use a negative sign to indicate if the adjustment decreases an account balance.
Income Statement Adjustments, $ mil.
2016
2015
2014
Warranty expense
3.03
(45.79)
43.14
Income tax expense
0.9
(13.73)
12.94
Net Income
2.13
(32.06)
30.2
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