The Following Is the 2017 Income Statement for Lamps, Inc

question 31

Multiple Choice

The following is the 2017 income statement for Lamps, Inc.
Lamps, inc.
Income Statement for Year Ending December 31, 2017
(in rmillions of dollars)
$$\begin{array}{l}\begin{array} {l l} \text { Net sales}&\$100\\\text {Less: Cost of goods sold }&80\\\text {Gross profits }&20\\\text { Less: Depreciation}&5\\\text {Eannings before interest and taxes (EBIT) }&15\\\text {Less: Iriterest }&2\\\text { Earnings before taxes (EBT) }&13\\\text {Less: Taxes }&5\\\text {Net income }&\$8\\\end{array}\end{array}$$
The CEO of Lamps wants the company to earn a net income of $12 million in 2018. Cost of goods sold is expected to be 75 percent of net sales, depreciation expense is not expected to change, interest expense is expected to increase to $4 million, and the firm's tax rate will be 40 percent. What is the net sales needed to produce net income of $12 million?

• A) $29 million
• B) $112 million
• C) $116 million
• D) $124 million

---

Definitions:

Numeric Rating Scale

A pain assessment tool where patients rate their pain on a scale, typically from 0 (no pain) to 10 (worst possible pain).

Brief Pain Inventory

A medical questionnaire used to measure pain levels in patients, assessing both the intensity of pain and the impact on daily functions.

Faces Pain Scale-Revised

A tool for assessing pain intensity, particularly in children, using a series of facial expressions to denote levels of pain.

Subjective Report

Information provided based on personal observation, feeling, or opinion, rather than objective measurement.