To achieve the target level of revenues in year 3 ($2,600), Finns’ Fridges will have to buy some more equipment. This will increase the amortization expense to $1,422. Selling costs will be the same percentage of sales as in year 2, and the interest expense for the year will be $120. Use this information to determine the amount of net income the company should expect to earn in year 3.
Finns’ Fridges is a company created by twin brothers David and Douglas Finn, who rented small refrigerators to other students in their college dormitory. Use the following statements to answer the questions about Finns’Fridges.

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