Question: The S&H Construction Company expects its sales next year to total $15,000,000. In addition, the firm pays taxes at 35 percent and will owe $300,000

The S&H Construction Company expects its sales next year to total $15,000,000. In addition, the firm pays taxes at 35 percent and will owe $300,000 in interest expense. Based on last year's operations, the firm's management predicts that its cost of goods sold will be 60 percent of sales and its operating expenses will total 30 percent. What is your estimate of the firm's net income (after taxes) for the coming year?

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SH will have net income of 780000 next year as found below We know that COGS and ope... View full answer

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