accounting principles 13th

3-15 INCOME STATEMENT Edmonds Industries is forecasting the following income statement: Sales $10,000,000 Operating costs excluding depreciation and amortization 5,500,000 EBITDA $ 4,500,000 Depreciation and amortization 1,200,000 EBIT 3,300,000 Interest 500,000 EBT $ 2,800,000 Taxes (40%) 1,120,000 Net income $1,680,000 The CEO would like to see higher sales and a forecasted net income of $2,100,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6 % . The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,100,000 in net income? E12.2 (LO 1) K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50,000 of personal cash to the partnership. Rosen owns land worth $15,000 and a small building worth $80,000, which she transfers to the partnership. Toso transfers to the partnership cash of $9,000, accounts re- ceivable of $32,000, and equipment worth $39,000. The partnership expects to collect $29,000 of the accounts receivable. Instructions Prepare the journal entries to record each of the partners' investments