Harrison Retail Inc. recently reported the following 2020 income statement (in millions of dollars): Income Statement (2020) Sales Amount ($ in millions) 900 Operating costs including depreciation 600 EBIT Interest EBT Taxes (35%) Net income 300 50 250 87.5 162.5 50 Dividends Addition to retained earnings 112.5 For the coming year (2021), the company forecasts a 20% increase in sales, and it expects that its year-end operating costs (including depreciation) will remain at 70% of sales. Harrison's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Harrison Retail's projected 2021 net income?

Harrison Retail Inc. recently reported the following 2020 income statement (in millions of dollars): Income Statement (2020) Sales Amount ($ in millions) 900 Operating costs including depreciation 600 EBIT Interest EBT Taxes (35%) Net income 300 50 250 87.5 162.5 50 Dividends Addition to retained earnings 112.5 For the coming year (2021), the company forecasts a 20% increase in sales, and it expects that its year-end operating costs (including depreciation) will remain at 70% of sales. Harrison's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Harrison Retail's projected 2021 net income?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter9: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 1P: Broussard Skateboard’s sales are expected to increase by 15% from $8 million in 2018 to $9.2 million...

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