Income Statement The following is the 2013 income statement for Lamps,Inc.
The CEO of Lamps wants the company to earn a net income of $12 million in 2014.Cost of goods sold is expected to be 75 percent of net sales,depreciation expense is not expected to change,interest expense is expected to increase to $4 million,and the firm's tax rate will be 40 percent.What is the net sales needed to produce net income of $12 million?

A)$29 million
B)$112 million
C)$116 million
D)$124 million

Question

Income Statement The following is the 2013 income statement for Lamps,Inc.
The CEO of Lamps wants the company to earn a net income of $12 million in 2014.Cost of goods sold is expected to be 75 percent of net sales,depreciation expense is not expected to change,interest expense is expected to increase to $4 million,and the firm's tax rate will be 40 percent.What is the net sales needed to produce net income of $12 million?

A)$29 million 
B)$112 million 
C)$116 million 
D)$124 million

Quizplus · Accepted Answer

The Answer of Income Statement The following is the 2013 income statement for Lamps,Inc.
The CEO of Lamps wants the company to earn a net income of $12 million in 2014.Cost of goods sold is expected to be 75 percent of net sales,depreciation expense is not expected to change,interest expense is expected to increase to $4 million,and the firm's tax rate will be 40 percent.What is the net sales needed to produce net income of $12 million?

A)$29 million 
B)$112 million 
C)$116 million 
D)$124 million

Income Statement the Following Is the 2013 Income Statement for Lamps,Inc