Question
PLEASE ANSWER THIS COMPLETELY & CORRECTLY, I WILL SURELY VOTE YOUR ANSWER, THANK YOU! A23 Warehousing forecasts the following income statement for the next year:
PLEASE ANSWER THIS COMPLETELY & CORRECTLY, I WILL SURELY VOTE YOUR ANSWER, THANK YOU!
A23 Warehousing forecasts the following income statement for the next year:
Income Statement For the Year Ended on December 31
Net sales | $960,000 |
Less: Variable costs | 532,000 |
Less: Fixed costs | 175,000 |
EBIT, or NOI | $253,000 |
Less: Interest | 131,000 |
EBT | $122,000 |
Less: Taxes | 48,800 |
Net income | $73,200 |
A23 Warehousing uses no preferred stock in its capital structure. Click on the following lines and calculate the degrees of operating, financial, and total leverage for A23 Warehousing
1.) DOL
a. 1.37
b. 1.69
c. 1.75
d. 1.55
e. 1.48
2.) DFL
a. 1.98
b. 2.23
c. 2.74
d. 2.93
e. 2.39
f. 2.56
g. 2.07
3.) DTL
a. 3.89
b. 4.00
c. 3.45
d. 3.51
e. 3.69
f. 3.79
g. 3.60
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