Hudson Company reports in its 2017 10-K, sales of $332 million, long-term debt of $27 million, and interest expense of $980,000.
If sales are projected to increase by 4% next year, projected interest expense for 2018 will be:

Question

Quizplus · Accepted Answer

Interest expense is typically not directly tied to sales, so unless there is information indicating a change in debt or interest rates, it is reasonable to assume it remains the same at $980,000.

Hudson Company Reports in Its 2017 10-K, Sales of $332