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7. Oliver Industries reported net income of $75 million in 2017. The companys corporate tax rate was 40% and its interest expense was $25 million.
7. Oliver Industries reported net income of $75 million in 2017. The companys corporate tax rate was 40% and its interest expense was $25 million. The company had $500 million in sales and its cost of goods sold was $350 million. Olivers goal is for its net income to increase by 20% (to $90 million) in 2018. It forecasts that the tax rate will remain at 40%, interest expense will increase by 40%, and cost of goods sold will remain at 70% of sales. What level of sales (to the closest million) will Oliver have to produce in 2018 in order to meet its goal for net income?
7. Oliver Industries reported net income of $75 million in 2017. The companys corporate tax rate was 40% and its interest expense was $25 million. The company had $500 million in sales and its cost of goods sold was $350 million. Olivers goal is for its net income to increase by 20% (to $90 million) in 2018. It forecasts that the tax rate will remain at 40%, interest expense will increase by 40%, and cost of goods sold will remain at 70% of sales. What level of sales (to the closest million) will Oliver have to produce in 2018 in order to meet its goal for net income?
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