Answer:
There is not enough information to determine the amount
Explanation:
<em>An increase in sales doesn't necessarily mean an increase in before tax income. Sales could increase by 3.8% and the expenses could also increase by a greater/similar percentage leaving behind before tax income constant or decreasing, therefore it's difficult to determine the amount due to lack of enough information. </em>
But, assuming all other expenses remain constant and no change in cost of goods sold then we can say that an increase in sales by 3.8% would be reflected in before tax income with the same percentage. Keeping in mind this assumption, the projected tax expense for 2014 could be as follows:
Lets first calculate current tax rate as follows;
Tax rate= $9.10 m ÷ $51.2 m× 100
Tax rate= 17.77%
Now, lets incorporate projected increase in before tax income.
Projected income = $51.2 m × 1.038
Projected income = $53.1456 million
Tax expense for 2014 = $53.1456 × 17.77%
Tax expense for 2014 = $9.45 million
