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

A recent cash budget showed estimated cash receipts, A recent cash budget ...

A recent cash budget showed estimated cash receipts of $159,000, estimated cash disbursements of $155,000, and a desired ending cash balance of $6,000, with no borrowing of funds

Accounts, what is the accounting concepts and conventions? and what is the ...

what is the accounting concepts and conventions? and what is the procedure to follow the accounting formats

Factors and primary objectives, a) Recoginize Trigon Corporation's critical...

a) Recoginize Trigon Corporation's critical success factors and primary objectives. b)What types of information may be helpful in evaluating these objectives?

Describe about ledger, Q. Describe about ledger? A ledger (general ledg...

Q. Describe about ledger? A ledger (general ledger) is the absolute collection of all the accounts of a company. The ledgers are feasibly in a bound volume in, loose-leaf form

Ledger, basic problems about ledger

basic problems about ledger

2 questions, WHERE DO I START? I have two questions QUESTION1 On March 31,...

WHERE DO I START? I have two questions QUESTION1 On March 31, 2010, our company, Harry Yolo, purchased a 100,000. 8% 10-year bond for 102 from Fish Gimp, due in 6 years & 8 months

Present value, Present value -- a notion that compares the value of money a...

Present value -- a notion that compares the value of money available in the future with thevalue of money in hand today. For instance $78.35 invested today in a 5% savings accountw

Significance of accounting standards, Significance of Accounting Standards:...

Significance of Accounting Standards: Setting of Standards is an effort to standardize the reporting of accounting information across the country and also transversely the glob

Montana company produces basketballs., Montana Company produces basketballs...

Montana Company produces basketballs. It incurred the following costs during the year. Direct materials: $14,032 Direct Labor: $25,706 Fixed manufacturing overhead: $9,698

Statement credit column of the work sheet, Revenues emerge in the Income St...

Revenues emerge in the Income Statement credit column of the work sheet. The two revenue accounts in the Income Statement are credit column for Micro Train Company are service reve

Write Your Message!

Captcha
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!

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