Provide correct solution and accounting question Devaney Convenience recently reported the following 2018 income statement (in millions ofdollars):Sales$700Operating costs including depreciation $500EBITInterestEBTTaxes (40%)Net incomeDividends$200$40$160$64$96$32$64Addition to retained earningsFor the coming year, the company is forecasting a 30% increase in sales, and it expects that itsyear-end operating costs, including depreciation, will equal 75% of sales. Devaney's tax rate,interest expense, and dividend payout ratio are all expected to remain constant.What is Devaney's projected 2019 net income?a) $112.50b) $104.00c) $132.00d) $222.00e) $250.00

Step 1: Define Projected net IncomeProjected net income is the estimated profit a company will be…

Answered: Devaney Convenience recently reported…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

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What is devaneys projected 2019 net income?
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