Question
Could you please provide step by step process/every step of the process to solve this problem along with the answer? The income statement for Crissy
Could you please provide step by step process/every step of the process to solve this problem along with the answer?
The income statement for Crissy Field Corporation appears below (amounts in millions): Total revenue $31,683.5 Cost of revenue 20,947.5 Gross profit 10,736.0 Total operating expenses 8,100.0 Operating income or loss 2,636.0 Other income/(expenses) 11.0 Earnings before interest and taxes 2,647.0 Interest expense 334.7 Income before tax 2,312.3 Income tax expense 809.3 Net income $ 1,503.0 Which amount is the closest to the pro forma net income for the next year if sales growth is forecasted to be 7% per year, the income tax rate is 35.0%, and all expenses except for interest vary as a function of sales?
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