Thursday, October 28, 2010

How do I find needed sales for a projected net income given all information?

The question says how much sales would be needed to have a net income of 2.5 million. It has all the info but what is the formula to get the required sales?How do I find needed sales for a projected net income given all information?
Use an Income Statement as a template and work backwords from Net Income. Make sure whether or not the problem asks to disregard taxes or not. I guess a simple version would look something like this.



Sales ???????

COGS 100,000

Op Exp 70,000

Taxes 40,000

NI 25,000



I assume this is for an accounting class?How do I find needed sales for a projected net income given all information?
Hi Louie, were u able to solve this question? i have the exact same question now and have no clue. i realize that it was a year ago.. but still.. lemme know then..:)

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