SALZA TECHNOLOGY CORPORATION Annual Income Statements (in $ Thousands) 2019 Net sales $375 Less: Cost of goods sold 225 Gross profit 150 Less: Operating expenses 46 Less: Depreciation 25 Less: Interest 4 Income before taxes 75 Less: Income taxes 20 Net income 55 2020 $450 270 180 46 30 4 100 30 70 Cash dividends $17 $20 Balance Sheets as of December 31 (in $ Thousands) 2019 Cash $ 39 Accounts receivable 50 Inventories 151 Total current assets 240 Gross fixed assets 200 Less accumulated depreciation -95 Net fixed assets 105 Total assets $345 2020 $ 16 80 204 300 290 -125 165 $465 $ 30 Accounts payable Bank loan Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 189893 $ 45 27 23 95 15 120 235 $465 $345

Based on the below IS & BS, please answer the 4 questionsa) LeAnn Sands wants to conduct operating breakeven analyses of the Salza Technology Corporation for 2020. Income statement information is shown Exercise 1 above. For 2020, the firms cost of goods sold is considered to be variable costs and operating expenses are considered to be fixed cash costs. Depreciation expenses in year 2020 also are expected to be fixed costs. Calculate Salzas EBDAT breakeven in terms of survival revenues for year 2020.

b) LeAnn Sands has reason to believe that year 2021 will be a replication of year 2020 except that cost of goods sold are expected to be 65 percent of the estimated $450,000 in revenues. Other income statement relationships are expected to remain the same in year 2021 as they were in year 2020. Calculate the EBDAT breakeven point for 2021 for Salza in terms of survival revenues.

c) Calculate Salzas NOPAT breakeven in terms of NOPAT breakeven revenues for year 2020.

d) Calculate the NOPAT breakeven point for 2021 for Salza in terms of NOPAT breakeven revenues.