What is the anticipated net profit

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The sales revenue on the October 1, 2012-September 30, 2013 income statement for Diane’s Thrift Store is as $1,200,000. Cost of goods sold for Diane’s Thrift Store was 30% of sales, operating expenses were 25% of sales, and total interest expense was $10,000.00. Her tax rate is 6%. Diane anticipates that between October 1, 2013 and September 30, 2014, Sales and cost of goods sold will increase 20% and expenses will decrease 10% from the prior year. Because Diane did not incur any additional debt, interest will remain at $10,000 and Diane’s Thrift Store will remain in the 6% tax bracket. What is the anticipated net profit for Diane’s Thrift Store between October 1, 2013 and September 30, 2014?

Reference no: EM131075693

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