Home / Questions / Income Statement Hermann Industries is forecasting the following incomestatement: Sales
Income Statement
Hermann Industries is forecasting the following incomestatement:
|
Sales |
$8,000,000 |
|
Operating costs excludingdepreciation & amortization |
4,400,000 |
|
EBITDA |
$3,600,000 |
|
Depreciation and amortization |
800,000 |
|
EBIT |
$2,800,000 |
|
Interest |
480,000 |
|
EBT |
$2,320,000 |
|
Taxes (40%) |
928,000 |
|
Net income |
$1,392,000 |
The CEO would like to see higher sales and a forecasted netincome of $2,714,400. Assume that operating costs (excludingdepreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increaseby 13%. The tax rate, which is 40%, will remain the same. Whatlevel of sales would generate $2,714,400 in net income? Ifnecessary, round your answer to the nearest dollar at the end ofthe calculations.
Dec 04 2019 View more View Less
The Cessna Citation ii is a light jet powered business aircraft which is used by the Delft University of Technology as a test aircraft. You are given the following parame...
Mar 27 2020Calculate the ratio of moles of H2O to moles of anhydrous KAl(SO4)2 Show all work to answer this question by uploading an image of your calculations into Photo 3 Note: Re...
Apr 17 2020Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in 2017. Assume TTT has a 35 percent marginal tax rate.What is TTT Corporationâs af...
Jun 25 2021“Let’s be more practical. DCF is not the gospel. Managers should not become so enchanted with DCF that strategic considerations are overlooked.” Do you agree? Explain.
Jul 15 2020Which aqueous solution is expected to have a higher boiling point: 0.10m Na2SO4 or 0.15m sugar?(b) For which aqueous solution is the vapor pressure of water higher: 0.30m...
Jun 19 2021The temptation is remarkable. The run is long. The body screams, "No more!" So there you are in the middle of a marathon and a shortcut crosses your mind. Cheating on thi...
Jul 25 2021Use the same proposed business idea that you created in the first module. For this assignment you will analyze the technological environment associated with the business ...
Apr 08 202115 Ten pairs of data yield r = 0168 and the regression equation yˆ = 9x + 6 Also, y¯ = ?99 What is the best predicted value of y for x = 7 ?
May 02 2020Identify errors in possessive construction in the following sentences. Write the correct forms. Each sentence contains one error.Security checked all of the reporters ID ...
Jun 15 2021What compound? is the CH3 CI IUPAC name for CH3 -CH-C-CH=CH the followin CH3 CH3 A) 4-chloro-4,5-dimethyl-2-hexene B) 3-chloro-1,3,4-trimethyl-1-pentene C) 3-chloro-2,3-...
Jun 20 2021