Oliver industries reported net income of 75 million in 2017


Oliver Industries reported net income of $75 million in 2017. The company's corporate tax rate was 40% and its interest expense was $25 million. The company had $500 million in sales and its cost of goods sold was $350 million. Oliver's goal is for its net income to increase by 20% (to 2 $90 million) in 2018. It forecasts that the tax rate will remain at 40%, interest expense will increase by 40%, and cost of goods sold will remain at 70% of sales. What level of sales (to the closest million) will Oliver have to produce in 2018 in order to meet its goal for net income?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Oliver industries reported net income of 75 million in 2017
Reference No:- TGS02863540

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)