Under the assumption that$$ KMS$\text{'}$s market share will increase by $0\mathrm{.}23\%$ per$$ year, you determine that the plant will require an expansion in $2021.$ The expansion will cost $ $21\mathrm{.}5$ million. Assume the$$ following: the debt financing of the expansion will be delayed accordingly$($end of $2021),$ KMS uses a$$ ten$-$year bond, interest rates remain the same at $7\mathrm{.}3\%,$ and$$ KMS$\text{'}$s tax rate is $25\%.$ KMS projects the following$$ depreciation: $($Click on the following icon in order to copy its contents into a$$ spreadsheet.$)$

$2019$

$2020$

$2021$

$2022$

$2023$

$2024$

Depreciation$(000)$

$ $5$ comma $522$

$ $5$ comma $465$

$ $7$ comma $425$

$ $7$ comma $439$

$ $7$ comma $543$

$ $7$ comma $586$

Using this information and the data given here LOADING...$,$ project net income through $2024.$

The Tax Cuts and Jobs Act of $2017$ temporarily allows$100\%$ bonus depreciation$($effectively expensing capital$$ expenditures$).$ However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.

Question content area bottom

Part $1$

Complete the following to determine the net income for each$$ year: $($Round to the nearest$$ integer.$)$

Income Statement $(000)$

$2019$

$2020$

$2021$

$2022$

$2023$

$2024$

Sales

$

$74,950$

$

$82,415$

$

$90,425$

$

$99,520$

$

$108,601$

$

$119,020$

Cost of Goods Sold

$(60,710)$

$(66,756)$

$(73,244)$

$(80,611)$

$(87,967)$

$(96,406)$

EBITDA

$

$

$

$

$

$

Depreciation

$

$

$

$

$

$

EBIT

$

$

$

$

$

$

Interest Expense

$

$

$

$

$

$

Pre$-$tax Income

$

$

$

$

$

$

Taxes

$

$

$

$

$

$

Net Income

$

$

$

$

$

$