Calculate the gross profits of the given

Reference no: EM131924153

Question: In 2016, Company XYZ reported revenue of $1,000,000, gross profit of $200,000, operating income of $40,000, pretax income of $36.000, net income of $21,600, and addition to retained earnings of $17,280. All of the cost of goods sold (COGS) and $100,000 of operating expenses were variable costs; the remainder of the operating expenses are fixed costs. The company had $100,000 of outstanding bonds with an annual interest rate of 4%. In 2017, Company XYZ expects that revenue will grow to $1,200,000. In addition, the company's outstanding debt, tax rate and dividend payout ratio will be unchanged. Calculate the following for 2017: Gross Profits, Operating Income (EBIT), Net Income, and Addition to Retained Earnings (ARE)

Reference no: EM131924153

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