Shack Hospitality Inc. is expecting sales of $2,000,000 next year. It's net PPE last year was $200000. On top of the spending to offset depreciation, Shack plans to spend $17,727.27 to increase seating capacity this year. It has a bank loan of 16,000 at a cost of 9%.

Using the information above and the table provided below, answer the following questions:

Questions

a)What is the depreciation rate that Shack is using for its equipment?

b)What is Shacks forecasted net income for next year?

PLEASE ANSWER ASAP!!!!!

Selected Financial Information \begin{tabular}{|lr|} \hline & Last Year Next Year \\ \hline Revenues & 1915256.76 \\ Cost of Goods Sold 1450000.00 \\ SG\&A & 225000.00 \\ Depreciation & 27272.73 \\ \cline { 2 - 2 } & 212984.03 \\ EBIT & 4713.00 \\ \cline { 2 - 2 } Interest Expense & 208271.03 \\ Pre-Tax Income & 56833.72 \\ \hline Income Taxes & 151437.31 \\ \hline Net Income & \\ \hline \end{tabular}