Chapter 5
Income Statement 200X Sales $1,500,000 Less: Variable costs $450,000 Fixed costs 550,000 1,000,000 Earnings before interest and taxes 500,000 Less: Interest expense 100,000 Earnings before taxes 400,000 Less: Taxes @ 34% 136,000 Earnings after taxes $ 264,000 Shares 100,000 Earnings per share $ 2.64 After the expansion, sales are expected to ... ................
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