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*SEE PICTURE 3. Edmond Industries is forecasting the following income statement for the coming year: Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and
*SEE PICTURE 3. Edmond Industries is forecasting the following income statement for the coming year: Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and Amortization EBIT Interest EBT Taxes (25%) Net Income $ Million 10.00 5.50 4.50 1.20 3.30 0.50 2.80 0.70 2.10 $ Million The company's CEO is disappointed and would like to higher sales and net income of $3.0 million. Assume that operating costs (excluding depreciation and amortization) are always 50 percent of sales. Assume that the company's depreciation, amortization and interest expense will increase by 6% from what they are now. The company's tax rate is 25 percent and will remain the same. What level of sales will the firm have to obtain to generate $3.0 million in net income? Show all your work. 3. Edmond Industries is forecasting the following income statement for the coming year: The company's CEO is disappointed and would like to higher sales and net income of $3.0 million. Assume that operating costs (excluding depreciation and amortization) are always 50 percent of sales. Assume that the company's depreciation, amortization and interest expense will increase by 6% from what they are now. The company's tax rate is 25 percent and will remain the same, What level of sales will the firm have to obtain to generate $3.0 million in net income? Show all your work
*SEE PICTURE
3. Edmond Industries is forecasting the following income statement for the coming year: Sales Operating costs (excluding depreciation and amortization) EBITDA Depreciation and Amortization EBIT Interest EBT Taxes (25%) Net Income $ Million 10.00 5.50 4.50 1.20 3.30 0.50 2.80 0.70 2.10 $ Million The company's CEO is disappointed and would like to higher sales and net income of $3.0 million. Assume that operating costs (excluding depreciation and amortization) are always 50 percent of sales. Assume that the company's depreciation, amortization and interest expense will increase by 6% from what they are now. The company's tax rate is 25 percent and will remain the same. What level of sales will the firm have to obtain to generate $3.0 million in net income? Show all your work.
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