2. 2: Corporate Valuation and Financial Planning: Forecasted Financial Statements Corporate Valuation and Financial Planning: Forecasted Financial Statements can be made to the statements to review alternative scenarios. The impact of these changes on the firm's forecasted financial statements ultimately can be used to improve the firm's operations. Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Looking ahead to the following year, the company's CFO has assembled this information: - Year-end sales are expected to be 4% higher than $4.3 billion in sales generated last year. - Year-end operating costs, excluding depreciation, are expected to increase at the same rates as sales. - Depreciation costs are expected to increase at the same rate as sales. - Interest costs are expected to remain unchanged. - The tax rate is expected to remain at 25%. round intermediate calculations. Round your answers to two decimal places. Edwin Inc. Income Statement Sales Operating costs (excluding depreciation) EBITDA Depreciation EBIT Interest EBT Taxes (25\%) Net income (in millions of dollars) $ $ $ $ $