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Speedy Motors is trying to forecast to 2024. Their current sales are $16 million, COGS are 30% of sales, operating expenses 40% of sales, interest
Speedy Motors is trying to forecast to 2024. Their current sales are $16 million, COGS are 30% of sales, operating expenses 40% of sales, interest expense 1% of sales and depreciation expense $100,000, Tax 30%, dividend payout 20%, 1 million shares stock. Depreciation expense of $100,00 does not change. For 2024 Speedy Motors expects a growth rate of 20%. Using the proforma method of forecasting, what is their anticipated 2024 EBT (Earnings Before Taxes). 0 a. $4,540,000 0 b. $5,468,000 0 c. $5,660,000 0 d. $3,827,600
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