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At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,150.00 Operating costs excluding depreciation 3,046.00 EBITDA
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
Sales | $4,150.00 |
Operating costs excluding depreciation | 3,046.00 |
EBITDA | $1,104.00 |
Depreciation | 300.00 |
EBIT | $804.00 |
Interest | 160.00 |
EBT | $644.00 |
Taxes (40%) | 257.60 |
Net income | $386.40 |
Looking ahead to the following year, the company's CFO has assembled this information:
- Year-end sales are expected to be 6% higher than $4.15 billion in sales generated last year.
- Year-end operating costs, excluding depreciation, will equal 70% of 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 40%.
On the basis of this information, what will be the forecast for Edwin's year-end net income? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Enter all values as positive numbers. Do not round intermediate calculations. Round your answers to two decimal places.
(in millions of dollars) | |
Sales | $ |
Operating costs excluding depreciation | |
EBITDA | $ |
Depreciation | |
EBIT | $ |
Interest | |
EBT | $ |
Taxes | |
Net income | $ |
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