The S&H Construction Company expects its sales next year to total $15,000,000. In addition, the firm pays
Question:
The S&H Construction Company expects its sales next year to total $15,000,000. In addition, the firm pays taxes at 35 percent and will owe $300,000 in interest expense. Based on last year's operations, the firm's management predicts that its cost of goods sold will be 60 percent of sales and its operating expenses will total 30 percent. What is your estimate of the firm's net income (after taxes) for the coming year?
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SH will have net income of 780000 next year as found below We know that COGS and ope...View the full answer
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Related Book For 
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
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