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Unformatted text preview: IncomeStatement2 Sales $7,500,000 $10,798,077 T 35% COGS $3,900,000 0.52 $5,615,000 10% EBITDA $3,600,000 $5,183,077 Depreciation $1,100,000 $1,210,000 EBIT $2,500,000 $3,973,077 INT $500,000 $550,000 EBT $2,000,000 $3,423,077 TAX $700,000 $1,198,077 NI $1,300,000 $2,225,000 The CFO of EsterInc. has forecasted the following Income Statement for the coming year. The CFO has hired you to find a way to have higher sales leading to Net Income of $2,225,000. Assume that operating costs are always the same percentage of sales and interest expense and depreciation will each rise by 10% and the tax rate remains at 35%. What level would sales have to be to generate the desired level of Net Income? ∆ r...
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This note was uploaded on 10/16/2010 for the course B&E FIN 500 taught by Professor Speaker during the Spring '10 term at WVU.
- Spring '10