Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. income statement edmonds industries is forecasting

INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation...

60.1K

Verified Solution

Question

Finance

image

INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales Operating costs excluding depreciation & amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income The CEO would like to see higher sales and a forecasted net income of $1,895,400. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,895,400 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations. $9,000,000 4,950,000 $4,050,000 900,000 $3,150,000 720,000 $2,430,000 972,000 $1,458,000 $9385600

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students