The question says how much sales would be needed to have a net income of 2.5 million. It has all the info but what is the formula to get the required sales?
Use an Income Statement as a template and work backwords from Net Income. Make sure whether or not the problem asks to disregard taxes or not. I guess a simple version would look something like this.
Sales ???????
COGS 100,000
Op Exp 70,000
Taxes 40,000
NI 25,000
I assume this is for an accounting class?
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September 23rd, 2009 at 7:17 pm
Use an Income Statement as a template and work backwords from Net Income. Make sure whether or not the problem asks to disregard taxes or not. I guess a simple version would look something like this.
Sales ???????
COGS 100,000
Op Exp 70,000
Taxes 40,000
NI 25,000
I assume this is for an accounting class?
References :
I’m a CPA