Question
Kenney Corporation recently reported the following income statement for 2013 (numbers are in millions of dollars): Sales $7,000 Total operating costs 3,000 EBIT $4,000 Interest
Kenney Corporation recently reported the following income statement for 2013 (numbers are in millions of dollars):
| Sales | $7,000 |
| Total operating costs | 3,000 |
| EBIT | $4,000 |
| Interest | 200 |
| Earnings before tax (EBT) | $3,800 |
| Taxes (40%) | 1,520 |
| Net income available to common shareholders | $2,280 |
The company forecasts that its sales will increase by 10 percent in 2014 and its operating costs will increase in proportion to sales. The company
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
