Answer:
The $20 amount of sales has increased
Explanation:
The amount of increased sales for the year 2014 is computed as:
Increased sales = Sales / Pre- tax earnings
where
Sales for the year amounts to $10,000,000
Pre- tax earnings for the year amounts to $500,000
Putting the values above:
Increased Sales = $10,000,000 / $500,000
= $20
Here we have to found, the increased sales, so only the sales amount and the earnings is considered while computing or evaluating the same.
NOTE: Here the question is missing as in the items are missing. So, I am providing the same. This is the question:
Flingers Company states the information in their annual report for the year 2014.
Earnings and Expense as:
Sales- $10,000,000
Cost of goods sold -$5,000,000
Pretax earnings -$500,000
Few Items of Balance Sheet
Merchandise inventory - $80,000
Total assets -$2,000,000
