idrisy
Sep 22, 2012, 12:30 PM
Income Statement
Hermann Industries is forecasting the following income statement:
Sales $11,000,000
Operating costs excluding depreciation & amortization 6,050,000
EBITDA $4,950,000
Depreciation and amortization 1,540,000
EBIT $3,410,000
Interest 1,100,000
EBT $2,310,000
Taxes (40%) 924,000
Net income $1,386,000
The CEO would like to see higher sales and a forecasted net income of $2,633,400. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 7%. The tax rate, which is 40%, will remain the same. What level of sales would generate $2,633,400 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.
Can someone please help me with this problem I would really appreciate it. Thank You
Hermann Industries is forecasting the following income statement:
Sales $11,000,000
Operating costs excluding depreciation & amortization 6,050,000
EBITDA $4,950,000
Depreciation and amortization 1,540,000
EBIT $3,410,000
Interest 1,100,000
EBT $2,310,000
Taxes (40%) 924,000
Net income $1,386,000
The CEO would like to see higher sales and a forecasted net income of $2,633,400. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 7%. The tax rate, which is 40%, will remain the same. What level of sales would generate $2,633,400 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.
Can someone please help me with this problem I would really appreciate it. Thank You