 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
What level of sales would generate $2,633,400 in net income?
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 |
||||
Check out some similar questions!
Sales - $6,000,000 Operating cost 3,300,000 EBITDA 2,700,000 Depreciation & Amort 420,000 EBIT 2,280,000 Interest ...
If a company has a net income of $155,400 in 2008 and the selling price is $160, the variable costs per unit were $100, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2009. They want to increase the net income by $60,000 in 2009. How...
How do I calculate the firms sales, margin and net income?
I am asked to write a memorandum explaining how a company could report net income when it sold less than its break-even volume in units. Here's the info. : "In the company's planning documents, John, the company's president reports that the break-even volume (in units) for the company is 21,739...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
