You have the following information from 2020 and are looking to forecast 2021. In 2021...
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You have the following information from 2020 and are looking to forecast 2021. In 2021 you expect sales to be equal to $11 million. Using the "Percent-of-Sales" model, what is the expected net income in 2021, assuming no increases in debt? Account 2020 Information Costs (excluding Depreciation) 74% of Sales Depreciation 6% of Sales Cost of Debt 17% Debt $20 million Taxes 1.5% of Sales Tax rate 25% $520,000 $450,000 $560,000 $600,000
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