[Solved] AstroTurf Company’s income statement

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Use AstroTurf Company’s income statement below to answer the following two questions.

a. Calculate AstroTurf’s EBITDA.b. Determine what level of sales would generate $3.3m in net income for the following year (Year 2), knowing that operating costs (excl. depreciation and amortization) will increase by 5%. The tax rate will not change.

Year 1 Income Statement:Sales: $11mOperating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35%


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[Solved] AstroTurf Company’s income statement
10 USD $