Question

The following information was developed from the financial statements of Donelson, Inc. At

the beginning of 2018, the company’s former supplier went bankrupt, and the company

began buying merchandise from another supplier.

2019 2018

Gross profit on sales $1,008,000 $1,134,000

Income before income tax 230,400 252,000

Net income 172,800 189,000

Net income as a percentage of net sales 6.0% 7.5%

Required:

a. Compute the net sales for each year.

b. Compute the cost of goods sold in dollars and as a percentage of net sales for each

year.

c. Compute operating expenses in dollars and as a percentage of net sales for each

year. (Income taxes expense is not an operating expense.)

d. Prepare a condensed comparative income statement for 2017 and 2018. Include the

following items: net sales, cost of goods sold, gross profit, operating expenses,​

Answer 1

Answer:

This implies that

x2+2ax=4x−4a−13

or

x2+2ax−4x+4a+13=0

or

x2+(2a−4)x+(4a+13)=0

Since the equation has just one solution instead of the usual two distinct solutions, then the two solutions must be same i.e. discriminant = 0.

Hence we get that

(2a−4)2=4⋅1⋅(4a+13)

or

4a2−16a+16=16a+52

or

4a2−32a−36=0

or

a2−8a−9=0

or

(a−9)(a+1)=0

So the values of a are −1 and 9.