User Account

All Pages

income statement, Accounting Basics

Assignment Help:
Hermann Industries is forecasting the following income statement:
Sales $10,000,000
Operating costs (excluding depreciation and amortization) 5,500,000
EBITDA $4,500,000
Depreciation and amortization 1,000,000
EBIT $3,500,000
Interest 500,000
EBT $3,000,000
Taxes (40%) 1,200,000
Net income $1,800,000
The CEO would like to see higher sales and a forecasted net income of $2,430,000.
Assume that operating costs (excluding depreciation and amortization) are 55% of sales, and depreciation and amortization and interest expenses will increase by 10%. The tax rate, which is 40%, will remain the same. What level of sales would generate $2,430,000 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.

Related Discussions:- income statement

AL MASA a sole trader, AL MASA a sole trader,decided to install a new machi...

AL MASA a sole trader,decided to install a new machine to use

What are the ratio trends, Profitability refers to a company's ability to o...

Profitability refers to a company's ability to obtain  profits and positive cash flows and to its ability to obtain an adequate return on invested capital or a company's ability to

Define gains and losses, Q. Define Gains and Losses? Gains are raise in...

Q. Define Gains and Losses? Gains are raise in equity net assets from peripheral or incidental transactions of an entity as well as from all other transactions and other events

Sasaaaaaaaaa, what is sasasaaaaaaaaaaaa

what is sasasaaaaaaaaaaaa

Research state and local governmental financial accounting, You recently la...

You recently landed your dream job working for the state as an accountant. You are given the task to research several state and local governmental financial accounting issues. F

A vendor reduces an item listed at $140 on july 1st by 20%, A vendor reduce...

A vendor reduces an item listed at $140 on July 1st by 20%, and then reduces it another 25% on September 1st. What is the sale price of the good after the last reduction? A. $7

Journal entry, what is journal entry

what is journal entry

intermediate accounting, #question.prepare the required adjusting entry fo...

#question.prepare the required adjusting entry for September 30, 2009

On aug 14th, On Aug 14th, One of our Partner's ( Compuville ) cash book sho...

On Aug 14th, One of our Partner's ( Compuville ) cash book showed a debit balance of $4,000.00. His bank statement showed a balance of $4,270.00. On comparison the following we

Jenny is 35 years of age, .What method of tax accounting used, Taxatio

.What method of tax accounting used, Taxation

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd