LLV Inc. originally forecasted the following financial data for next year: Sales = $1,000, Cost of goods sold = $710 and Interest expense = $95. The firm believes that COGS will always be 71% of sales. Due to pressure from shareholders, the firm wants to achieve a net income of $150. Assuming the interest expense will remain the same, how large must sales be to achieve this goal? Assume a 35% tax rate.
A) $1,403.82
B) $1,3009.18
C) $1,123.34
D) $1,296.51

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The Answer of LLV Inc. originally forecasted the following financial data for next year: Sales = $1,000, Cost of goods sold = $710 and Interest expense = $95. The firm believes that COGS will always be 71% of sales. Due to pressure from shareholders, the firm wants to achieve a net income of $150. Assuming the interest expense will remain the same, how large must sales be to achieve this goal? Assume a 35% tax rate.
A) $1,403.82
B) $1,3009.18
C) $1,123.34
D) $1,296.51

LLV Inc Originally Forecasted the Following Financial Data for Next Year