Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciati

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Edmonds Industries Is Forecasting The Following Income Statement Sales 11 000 000 Operating Costs Excluding Depreciati 1 (17.26 KiB) Viewed 29 times

Edmonds Industries is forecasting the following income statement: Sales $11,000,000 Operating costs excluding depreciation & amortization 6,050,000 EBITDA $4,950,000 Depreciation and amortization. 1,540,000 EBIT $3,410,000 Interest 990,000 EBT $2,420,000 Taxes (25%) 605,000 $1,815,000 Net income The CEO would like to see higher sales and a forecasted net income of $2,670,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 15%. The tax rate, which is 25%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $2,670,000 in net income? Round your answer to the nearest dollar, if necessary.