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Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Base Case Sales $2,110 $ Cost of goods sold 1,287 Selling, general, and 401 administrative expense Depreciation 121 Research and development 112 Total costs and expenses $1,921 $ Operating Income 189 Interest expense 34 Earnings before Income Taxes $155 $ Provision for Income Taxes 28 Net Income $127 $ Combined

Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Base Case Sales $2,110 $ Cost of goods sold 1,287 Selling, general, and 401 administrative expense Depreciation 121 Research and development 112 Total costs and expenses $1,921 $ Operating Income 189 Interest expense 34 Earnings before Income Taxes $155 $ Provision for Income Taxes 28 Net Income $127 $ Combined

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Base Case Sales $2,110 $ Cost of goods sold 1,287 Selling, general, and 401 administrative expense Depreciation 121 Research and development 112 Total costs and expenses $1,921 $ Operating Income 189 Interest expense 34 Earnings before Income Taxes $155 $ Provision for Income Taxes 28 Net Income $127 $ Combined
Transcribed Image Text:Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Base Case Sales $2,110 $ Cost of goods sold 1,287 Selling, general, and 401 administrative expense Depreciation 121 Research and development 112 Total costs and expenses $1,921 $ Operating Income 189 Interest expense 34 Earnings before Income Taxes $155 $ Provision for Income Taxes 28 Net Income $127 $ Combined
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