Question
1. How much are the companys sales in 2020 ($millions)? 2.Refer to the income statement for Bright Star you completed above. How much is the
1. How much are the companys sales in 2020 ($millions)?
2.Refer to the income statement for Bright Star you completed above. How much is the companys Depreciation and Amortization in 2020 ($millions)?
3.Refer to the income statement for Bright Star you completed above. How much is the companys Interest ($millions)?
4.Refer to the income statement for Bright Star you completed above. How much is the companys EBT ($millions)?
5.Refer to the income statement for Bright Star you completed above. How much is the companys Net Income ($millions)?
6.Refer to the income statement for Bright Star you completed above. What is the companys Operating Margin?
Assumptions: . Earnings grow by 16% from 2019 to 2020 Costs and expenses excluding depreciation and amortization are 73% of sales in 2020 (down from 75% in 2019) Depreciation and amortization increases 9% from 2019 to 2020 Interest expense increases 10% from 2019 to 2020 Tax rate is 27% . Income Statements 2020 2019 (in millions of dollars) Sales $2,376 Costs+Exp excl. D&A $1,782 EBITDA $594 Depr. & amort. $90 EBIT $504 Interest expense $60 $444 Taxes $120 Net Income $324
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