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Question: need the answers as soon as possible need to submit...

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Need the answers as SOON as possible, need to submit it in 2 hours and 15 minutes.

Spotty Pooch Ltd specialises in selling high-end canine grooming equipment.  Recent years have seen an explosion in the growth of the business and the company decided to hire a full-time bookkeeper named Karen to help manage the company’s administrative services.  Karen was a hardworking and charismatic individual, and everyone at the company liked her.  It was ultimately discovered, however, that Karen has been embezzling funds from the company.  You have been hired as the forensic investigator as it was determined that Karen misappropriated a total of $28,650 from the company.  Spotty Pooch Ltd request that you help them determine the amount of additional revenue required to compensate (make up for) for the fraud loss.  They provide you with the following summary data from their Income Statement (Profit and Loss Statement) for the year ended 30 June 2020.

Spotty Pooch Ltd
Income statement
For the year ended 30 June 2020

 

Sales

$50,000

Less: Cost of good sold

20,000

Gross margin

30,000

Less: Expenses

17,500

Net income

12,500

 
How much additional revenue does the company have to generate to compensate (make up for) the fraud loss? (4 mark) 

Hint: you do not need to write any formulas; simply provide your final answer.

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