sales revenues l salesshould in workther equalnet income lesstaxes 39 equalsebt lesinerest expen

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Sales revenues should increase by 20 percent. The equation is as follows: Net income = Sales revenues - Taxes (39%) EBT = Net income - Interest expense EBIT = EBT - Federal costs (rounded to the nearest whole percent) Complete the following income statement: The increase in sales revenues is 20 percent. The president expects the firm's break-even point in sales dollars to be at the forecast level. Use the EBT from the two income statements to calculate the percentage change in EBT. Sales revenues: $520,000 Net income: $3,162,000 Taxes: $19,420,800 EBT: $24,480,000 Since variable costs will also increase by 20 percent, the forecast level of variable costs should increase by 20 percent as well. To verify the calculation, input the information into a spreadsheet and calculate the break-even point in sales dollars. Other items to consider: Tax rate: 31% Interest expense: $79,000 Degree of operating leverage: 6 times Return on operating assets: $3,400,000 Operating asset turnover: 79,000 units

          Sales revenues should increase by 20 percent. The equation is as follows:
Net income = Sales revenues - Taxes (39%)
EBT = Net income - Interest expense
EBIT = EBT - Federal costs (rounded to the nearest whole percent)
Complete the following income statement:
The increase in sales revenues is 20 percent. The president expects the firm's break-even point in sales dollars to be at the forecast level. Use the EBT from the two income statements to calculate the percentage change in EBT.
Sales revenues: $520,000
Net income: $3,162,000
Taxes: $19,420,800
EBT: $24,480,000
Since variable costs will also increase by 20 percent, the forecast level of variable costs should increase by 20 percent as well. To verify the calculation, input the information into a spreadsheet and calculate the break-even point in sales dollars.
Other items to consider:
Tax rate: 31%
Interest expense: $79,000
Degree of operating leverage: 6 times
Return on operating assets: $3,400,000
Operating asset turnover: 79,000 units

sales revenues l salesshould in workther equalnet income lesstaxes 39 equalsebt lesinerest expene equalsebit lesofed costs round to the nearest whole percent round to the nearest dolar op pu 06705

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