Question: Using the data below from last year, project next years net income for Junes Jewels: a. Sales are $5,500,000 b. SG&A is $700,000 c. Interest

Using the data below from last year, project next years net income for Junes Jewels:

a. Sales are $5,500,000

b. SG&A is $700,000

c. Interest is $50,000

d. Tax rate is 40%

e. Cost of Goods Sold is $4,000,000

f. Depreciation is $0.

assumptions: sales increase by 5%, cost of goods sold increase by 3%, SG&A increase by 7%, interest and depreciation will stay the same

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