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Income Statement Listed Below Is the 2008 Income Statement for Lamps

Question 23

Multiple Choice

Income Statement Listed below is the 2008 income statement for Lamps, Inc. Income Statement Listed below is the 2008 income statement for Lamps, Inc. The CEO of Lamps wants the company to earn a net income of $12 million in 2009. 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 The CEO of Lamps wants the company to earn a net income of $12 million in 2009. 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

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