I need the answer as soon as possible 3-15INCOME STATEMENT Edmonds Industries is forecasting the following income statement:Sales$10,000,000Operating costs excluding depreciation and amortization5,500,0005 4,500,000EBITDADepreciation and amortization1,200,0005 3.300,000so0,000$ 2.800,000EBITInterestEBTTawes (40)1,120.000$ 1,680,000Net incomeThe CEO would like to see higher sales and a forecasted net income of $2,100,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 6%, The tax rate,which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxespaid will change) What level of sales would generate $2,100,000 in net income?

Here in this question, we are required to calculate how much sales are required to get net income of…

Answered: INCOME STATEMENT Edmonds Industries is…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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8. The following information is available for the Hancock Company. Sales Cost of Sales Operating Expenses Operating Earnings Average Invested Capital Minimum Acceptable Return Residual Income Capital Turnover ROI $ 756,000 315,000 $ $ 252,000 A $1,890,000 12% B C D Compute the answers for items A-D.
estion 4 calculate the net income from the following information: sales $537,000; variable costs $346,800; depreciation $94,500; and tax rate is 21% Ⓒ$75,760 O $75,761 Ⓒ$75,762 $75,763
5 Edmonds Industries is forecasting the following income statement: Sales Operating costs (excl. Depr. & Amort.) EBITDA Depreciation EBIT Interest EBT Taxes (40%) Net income $10,000,000 5,500,000 4,500,000 1,200,000 $ 3,300,000 500,000 $ 2,800,000 1,120,000 $ 1,680,000 The CEO would like to see higher sales and a forecasted net income of $2,100,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 6%. 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 $2,100,000 in net income?
The following selected data for BC Company for 2022: Sales P 2,000,000Variable Costs 1,200,000Traceable Fixed Costs 200,000Average Invested Capital 400,000Capital Charge 15% 1. The residual income amounted to? 2. Assuming the same information in the previous item, the return on investment percentage is?
Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes Calculate the EBIT. EBIT
Q6 Selected data from Box Division's accounting records revealed the following: Sales $ 825,000 Average investment $ 440,000 Net operating income $ 66,000 Minimum rate of return (divisional cost of capital) 14% Box Division's asset turnover (AT) is calculated to be: (Round your answer to three decimal places.) Multiple Choice 4.270. 1.070. 1.875. 12.500. 1.625.
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Assume a company had net operating income of $300,000, sales of $1,500,000, residual income of $130,000, and a minimum required rate of return on average operating assets of 14.00%. The company's average operating assets are closest to: Multiple Choice $1,214,286. $1,035,715. $1,157144. $1,200,000. 田

Q Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses $80,000; and Taxes = $300,000. Rogue's operating income is equal to (use an integer number without $ sign, such as $1,234,567⇒ 1234567) Question 25 Tiada

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