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Brighton Retail provided the following 2024 income statement (in thousands of dollars): Income Statement Items 2024 Amount ($) Sales Revenue 850 Operating Costs (including depreciation) 595 EBIT Interest Expense EBT Taxes (35%) Net Income 255 45 210 73.5 136.5 40 96.5 Dividends Addition to Retained Earnings For 2025, the company forecasts: • 25% increase in sales • Operating costs will be 70% of sales • Interest expense, tax rate, and dividend payout ratio remain constant Calculate Brighton's projected net income for 2025.

Brighton Retail provided the following 2024 income statement (in thousands of dollars): Income Statement Items 2024 Amount ($) Sales Revenue 850 Operating Costs (including depreciation) 595 EBIT Interest Expense EBT Taxes (35%) Net Income 255 45 210 73.5 136.5 40 96.5 Dividends Addition to Retained Earnings For 2025, the company forecasts: • 25% increase in sales • Operating costs will be 70% of sales • Interest expense, tax rate, and dividend payout ratio remain constant Calculate Brighton's projected net income for 2025.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Provide correct answer general accounting

Brighton Retail provided the following 2024 income statement (in thousands of dollars): Income Statement Items 2024 Amount ($) Sales Revenue 850 Operating Costs (including depreciation) 595 EBIT Interest Expense EBT Taxes (35%) Net Income 255 45 210 73.5 136.5 40 96.5 Dividends Addition to Retained Earnings For 2025, the company forecasts: • 25% increase in sales • Operating costs will be 70% of sales • Interest expense, tax rate, and dividend payout ratio remain constant Calculate Brighton's projected net income for 2025.
Transcribed Image Text:Brighton Retail provided the following 2024 income statement (in thousands of dollars): Income Statement Items 2024 Amount ($) Sales Revenue 850 Operating Costs (including depreciation) 595 EBIT Interest Expense EBT Taxes (35%) Net Income 255 45 210 73.5 136.5 40 96.5 Dividends Addition to Retained Earnings For 2025, the company forecasts: • 25% increase in sales • Operating costs will be 70% of sales • Interest expense, tax rate, and dividend payout ratio remain constant Calculate Brighton's projected net income for 2025.
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