Bruto\'s sales for year 2014 were $74889 thousands of dollars. For that year the

Q: Bruto's sales for year 2014 were $74889 thousands of dollars. For that year the

Net Income for 2015: Sales (10% increase from 2014): 82,377,900 Less: Cost of Sales (@78%): (64,254,762) Less: Depreciation (@7.333% of Sales) (6,040,771) Less: Interest Expense (306,000) = Pre-Tax Income 11,776,367 Less: Income Tax (@35%) (4,121,728) = Post-Tax Net Income 7,654,639 Rounded off to nearest thousand unit: 7,655

ID: 2645696 • Letter: B

Question

Bruto's sales for year 2014 were $74889 thousands of dollars. For that year the cost of sales without depreciation was 78% the value of sales and depreciation was 7.333% the value of sales.

Calculate the Net Income of Bruto, assuming that the income tax for the company is 35% and that they are projecting an increase in sales of 10%, with an interest expense of $306 thousands of dollars

Note: Express the terms of your answer strictly numerical terms, and rounded to the nearest thousand unit. Example: If your answer is one million fifty thousand and one hundred dollars (or $1,050,100), write: 1050.

Explanation / Answer

Net Income for 2015:

Sales (10% increase from 2014): 82,377,900

Less: Cost of Sales (@78%): (64,254,762)

Less: Depreciation (@7.333% of Sales) (6,040,771)

Less: Interest Expense (306,000)

= Pre-Tax Income 11,776,367

Less: Income Tax (@35%) (4,121,728)

= Post-Tax Net Income 7,654,639

Rounded off to nearest thousand unit: 7,655

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Bruto\'s sales for year 2014 were $74889 thousands of dollars. For that year the

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