The CEO of Tom and Sue's Wants the Company to Earn

question 58

Multiple Choice

The CEO of Tom and Sue's wants the company to earn a net income of $3.25 million in 2014. Cost of goods sold is expected to be 60 percent of net sales, depreciation expense is $2.9 million, interest expense is expected to increase to $1.050 million, and the firm's tax rate will be 30 percent. Calculate the net sales needed to produce net income of $3.25 million.

• A)$26.02 million
• B)$29.36 million
• C)$21.48 million
• D)$28.25 million

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Definitions:

Discontinuous Change

Development that occurs in distinct steps or stages, with each stage bringing about behavior that is assumed to be qualitatively different from behavior at earlier stages.

Continuous Change

Gradual development in which achievements at one level build on those of previous levels.

Sensitive Periods

Times during early childhood development when the brain is particularly receptive to learning specific skills or knowledge.

Sociocultural-Graded Influences

Factors that affect individuals differently based on their social and cultural background.