Reference no: EM132474398

Question 1: In its most recent ?nancial statements, Nessler Inc. reported $?0 million of net income and $910 million of retained earnings. The previous retained earnings were $81". million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually are paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary

Edmonds Industries is forecasting the following income statement:

Sales                                                                        $3,000,000

Operating costs excluding depreciation 8i. amortization       4,400,000

EBmJA                                                                      $3,600,000

Depreciation and amortization                                           560,000

EBIT                                                                        $3,040,000

Interest                                                                        320,000

EBT                                                                           $2,320,000

Question 2: Taxes (25%) 530,000 Net income $1,740,000 The CEO would like to see higher sales and a forecasted net income of $2,120,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 13%. The tax rate, which is 25%. will remain the same. (Note that while the tax rate remains constant, the taxes paid will change) What level of sales would generate $2,120,000 in net income? Round your answer to the nearest dollar, if necessary