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please show work Happiness Housing Corporation has forecast the following numbers for this upcoming year: Sales $1,000,000 Cost of Goods Sold 600,000 Interest Expense 100,000
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Happiness Housing Corporation has forecast the following numbers for this upcoming year: Sales $1,000,000 Cost of Goods Sold 600,000 Interest Expense 100,000 Net Income 225,000 The company is in the 25 percent tax bracket. Its cost of goods sold always represents 60 percent of its sales. That is, if the company's sales were to increase to $1.5 million, its cost of goods sold would increase to $900,000. The company's CEO is unhappy with the forecast and wants the firm to achieve a net income equal to $450,000. Recalculate the new forecast. Assume that the interest expense remains the same for both forecasts. Provide the new income statement forecast. Your answer should include the following four values for the new forecast: 1) Sales $ 2) EBIT $ 3) EBT $ 4) Tax $ jore (#1 #2 #3 #4) (show your work)Step by Step Solution
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