Santos Inc. reported total sales of $81,200 for the year 2021. The cost of sales without depreciation was 76% of sales, and depreciation amounted to 6.5% of sales. The company's income tax rate is 30%, and the interest expense for the year was $350. Santos Inc. expects a 12% increase in sales for 2022. Calculate the Net Income for 2021 and 2022.

Santos Inc. reported total sales of $81,200 for the year 2021. The cost of sales without depreciation was 76% of sales, and depreciation amounted to 6.5% of sales. The company's income tax rate is 30%, and the interest expense for the year was $350. Santos Inc. expects a 12% increase in sales for 2022. Calculate the Net Income for 2021 and 2022.

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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