INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $4,000,000 Operating costs excluding depreciation...
INCOME STATEMENT
Edmonds Industries is forecasting the following income statement:
| Sales | $4,000,000 |
| Operating costs excluding depreciation & amortization | 2,200,000 |
| EBITDA | $1,800,000 |
| Depreciation and amortization | 600,000 |
| EBIT | $1,200,000 |
| Interest | 200,000 |
| EBT | $1,000,000 |
| Taxes (40%) | 400,000 |
| Net income | $600,000 |
The CEO would like to
see higher sales and a forecasted net income of $1,020,000. Assume
that operating costs (excluding depreciation and amortization) are
55% of sales and that depreciation and amortization and interest
expenses will increase by 15%. 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
$1,020,000 in net income? If necessary, round your answer to the
nearest dollar at the end of the calculations.
$
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INCOME
STATEMENT
Edmonds Industries is
forecasting the following income statement:
Sales
$4,000,000
Operating costs excluding
depreciation...
INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation...
INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation & amortization 5,500,000 EBITDA $4,500,000 Depreciation and amortization 1,300,000 EBIT $3,200,000 Interest 500,000 EBT $2,700,000 Taxes (40%) 1,080,000 Net income $1,620,000 The CEO would like to see higher sales and a forecasted net income of $2,835,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 14%. The tax rate, which...
INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $5,000,000 Operating costs excluding depreciation...
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I underline what need to be done a,b an c note balance sheet is not given...
I
underline what need to be done a,b an c
note balance sheet is not given
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Please solve all Byron Books Inc. recently reported $18 million of net income. Its EBIT was...
Please solve all
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ear 2 income statement data for Fuzzy Button, then answer the questions that follow. Be sure...
ear 2 income statement data for Fuzzy Button, then answer the questions that follow. Be sure to round each dollar value to ti Fuzzy Button Clothing Company Income Statement for Year Ending December 31 Year 2 (Forecasted) Year 1 $25,000,000 Net sales 20,000,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 1,000,000 1,000,000 $4,000,000 Operating income (or EBIT) Less: Interest expense 400,000 Pre-tax income (or EBT) 3,600,000 Less: Taxes (40%) 1,440,000 Earnings after taxes $2,160,000 Less:...
Consider the following scenario: Cute Camel Woodcraft Company’s income statement reports data for its first year...
Consider the following scenario:
Cute Camel Woodcraft Company’s income statement reports data for
its first year of operation. The firm’s CEO would like sales to
increase by 25% next year.
1.
Cute Camel is able to achieve this level of increased sales,
but its interest costs increase from 10% to 15% of earnings before
interest and taxes (EBIT).
2.
The company’s operating costs (excluding depreciation and
amortization) remain at 70.00% of net sales, and its depreciation
and amortization expenses remain...
I
underline what need to be done a,b an c
note balance sheet is not given
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Please solve all
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ear 2 income statement data for Fuzzy Button, then answer the questions that follow. Be sure to round each dollar value to ti Fuzzy Button Clothing Company Income Statement for Year Ending December 31 Year 2 (Forecasted) Year 1 $25,000,000 Net sales 20,000,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 1,000,000 1,000,000 $4,000,000 Operating income (or EBIT) Less: Interest expense 400,000 Pre-tax income (or EBT) 3,600,000 Less: Taxes (40%) 1,440,000 Earnings after taxes $2,160,000 Less:...
Consider the following scenario:
Cute Camel Woodcraft Company’s income statement reports data for
its first year of operation. The firm’s CEO would like sales to
increase by 25% next year.
1.
Cute Camel is able to achieve this level of increased sales,
but its interest costs increase from 10% to 15% of earnings before
interest and taxes (EBIT).
2.
The company’s operating costs (excluding depreciation and
amortization) remain at 70.00% of net sales, and its depreciation
and amortization expenses remain...
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