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Smith and T Co. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales Less:
Smith and T Co. forecasts the following income statement for the next year: Income Statement For the Year Ended on December 31 Net sales Less: Variable costs $960,000 532,000 139,000 Less: Fixed costs EBIT, or NOI $289,000 176,000 Less: Interest EBT $113,000 Less: Taxes 45,200 Net income $67,800 Smith and T Co. uses no preferred stock in its capital structure. Calculate the degrees of operating, financial, and total leverage for Smith and T Co. and select your answers in the following table. DOL DFL DTL
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