For Jim's Espresso, use 35% of the income tax rate. (= 32,760/93,600).
For Jim's Espresso, you will have total liabilities and shareholders' equity larger than total assets. What should you do in order to balance between assets and liabilities & shareholders equity in this case? Read the book for more info.
Leave interest expense and debt the same when you forecast items for next year. Jim's expects sales to grow by 10% next year. Assume that Jim's pays out 90% of its net income. Using the percent of sales method, forecast financial statements for next year. Fill in the columns named “Next Year.” What is the amount of net new financing needed for Jim's? Income Statement % of Sales Next Year Calculations Sales Costs except Depr. EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Current Year 200,000 (100,000) 100,000 (6,000) 94,000 (400) 93,600 (32,760) 60,840 Net Income

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now