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You have developed the following pro forma income statement for your corporation It represents the most recent year's operations, which ended yesterday Your supervisor in
You have developed the following pro forma income statement for your corporation It represents the most recent year's operations, which ended yesterday Your supervisor in the controller's office has just handed you a memorandum asking for written responses to the following questions If sales should increase by 30 percent by what percent would earnings before interest and taxes and net income increase? If sales should decrease by 30 percent by what percent would earnings before interest and taxes and net income decrease? If the firm were to reduce its reliance on debt financing such that interest expense were cut in half how would this affect your answers to parts a and b
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