Question: can anyone show me how to work through this type of problem? INCOME STATEMENT Edmonds Industries is torecasting the following income statement: Sal es Operatino

 can anyone show me how to work through this type of

can anyone show me how to work through this type of problem?

INCOME STATEMENT Edmonds Industries is torecasting the following income statement: Sal es Operatino costs excluding depreciation & amortization4,400,000 EBITDA Depreciation and amortization EBIT Interest $8,000,000 $3,600,000 720,000 $2,830,000 720,000 Taxes (40%) Net income The CEO would like to see higher sales and a forecasted net income of $1,879,200. Assume that operating costs excluding depreciation and amortization are 55% of sales and that depreciation and amort zation and interest expenses increase by 7% The tax rate wh ch s 40% wil remain the same. Note that while the tax rate remains constant, the taxes paid wl change what level of sales would generate $1,879,200 n net income? t necessary, round your answer to the nearest dollar at the end of the calculations. 164,000 1,296,000 02400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!