Question
1. In the year 2020, Metro Corporation expects an increase of 25% in cost of sales as compared to cost of sales in 2019 of
1. In the year 2020, Metro Corporation expects an increase of 25% in cost of sales as compared to cost of sales in 2019 of RM135,000. Sales in 2019 is RM 225,000. Operating expenses for 2019 of RM23,000 will increase by 5% while interest on loans (RM4,000) and depreciation (RM15,000) remains. Tax rate is 25%.
a) Prepare an income statement for Metro Corporation for the year ended June 31, 2019.
b) How much is the revenues/sales for 2020 if Metro Corporation wants to reach breakeven based on : EBDAT? NOPAT?
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
