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The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets?       Sales $50,000     CoGS 30,000     EBDIT 20,000     Depreciation 10,000     EBIT 10,000     Interest expense 5,000     Taxable income 5,000     Taxes (35%) 1,750     Net Income 3,250     Dividends 975

The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets?       Sales $50,000     CoGS 30,000     EBDIT 20,000     Depreciation 10,000     EBIT 10,000     Interest expense 5,000     Taxable income 5,000     Taxes (35%) 1,750     Net Income 3,250     Dividends 975

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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The following is Firm Y's current statement of comprehensive income. If the firm is currently operating at 75% capacity, how much must sales increase before Firm Y needs to buy new fixed assets?

 

 
  Sales $50,000  
  CoGS 30,000  
  EBDIT 20,000  
  Depreciation 10,000  
  EBIT 10,000  
  Interest expense 5,000  
  Taxable income 5,000  
  Taxes (35%) 1,750  
  Net Income 3,250  
  Dividends 975  
 

 

Multiple Choice
  •  
    50%
  •  
    75%
  •  
    30%
  •  
    66.67%
  •  
    33.33%
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