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Question - PT Mikea Indonesia reported sales of $2.1 million in 2021. The company's primary business is the manufacture of furniture and house appliances. Since this is a mature industry in a country with a large population, management of the company and analysts are confident that sales will grow at a steady rate of 7 % per year. The company's net income equals 23% of sales. Next year, management would like to buy a new fleet of trucks but can only do so once the net income reaches $620,000 a year. At the end of what year will the company be able to buy the trucks? What will sales and net income be in that year?
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