Question
Globex Corp forecasts the following income statement for the next year: Income Statement for the year ended Dec 31 Net Sales - $960,000 Less: Variable
Globex Corp forecasts the following income statement for the next year:
Income Statement for the year ended Dec 31
Net Sales - $960,000
Less: Variable Costs - $532,000
Less: Fixed Costs - $155,000
EBIT, or NOI - $273,000
Less: Interest - $156,000
EBT - $117,000
Less: Taxes - $46,800
Net Income - $70,200
Globex Corp uses no preferred stock in its capital structure. Click on the following lines and calculate the degrees of operating, financial, and total leverage for Globex Corp.
DOL = 1.78, 1.39, 1.57, 1.50, OR 1.62
DFL = 2.23, 1.93, 2.07, 2.33, 2.68, 2.86, OR 2.50
DTL = 3.66, 3.42, 3.75, 3.96, 3.60, 3.51, OR 3.86
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