Question
Green Co. manufactures solar panels. In 2018 they are projecting that they will sell 5850 solar panels. They pay $800,000 to there employees. They will
Green Co. manufactures solar panels. In 2018 they are projecting that they will sell 5850 solar panels. They pay $800,000 to there employees. They will spend $900,000 on materials, $80,000 on utilities. They have bonds outstanding and they will pay $200,000 in interest on those bonds. Green Co will make a dividend distribution of $500,000 to its share holders. The IRS will allow a $100 tax credit for every solar panel that they sell, and they have $200,000 of allowable depreciation. All of their income comes from the sale of solar panels, and they will sell them at an average price of $1750. What is their projected income for 2018?
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