Respuesta :
Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year.
The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
In Year 2, Cute Camel expects to pay $100,000 and $1,419,075 of preferred and common stock dividends, respectively.
An income assertion is a financial announcement that suggests you the company's income and expenses. It also suggests whether or not a corporation is making earnings or loss for a given length. The earnings statement, along with balance sheet and cash flow statement, helps you understand the financial health of your business. The simple formula for an income declaration is sales – charges = internet income. This simple equation suggests whether the employer is profitable. If sales are extra than charges, the enterprise is profitable.
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