The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets? Sales $50,000 CoGS 30,000 EBDIT 20,000 Depreciation 10,000 EBIT 10,000 Interest expense 5,000 Taxable income 5,000 Taxes (35%) 1,750 Net Income 3,250 Dividends 975
The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets? Sales $50,000 CoGS 30,000 EBDIT 20,000 Depreciation 10,000 EBIT 10,000 Interest expense 5,000 Taxable income 5,000 Taxes (35%) 1,750 Net Income 3,250 Dividends 975
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 13P: Payne Products had $1.6 million in sales revenues in the most recent year and expects sales growth...
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The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets?
Sales | $50,000 |
CoGS | 30,000 |
EBDIT | 20,000 |
Depreciation | 10,000 |
EBIT | 10,000 |
Interest expense | 5,000 |
Taxable income | 5,000 |
Taxes (35%) | 1,750 |
Net Income | 3,250 |
Dividends | 975 |
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