Click here to read the eBook: The Income Statement Problem Walk-Through INCOME STATEMENT Edmonds Industries is forecasting the following income statement Sales Operating costs excluding depreciation & amortization 3,850,000 EBITDA Depreciation and amortization EBIT Interest EBT Taxes (40%) Net income The CEO would like to see higher sales and a forecasted net income of $1,814,400. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 8%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,814,400 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations $7,000,000 $3,150,000 490,000 $2,660,000 420,000 $2,240,000 896,000 $1,344,000