Question
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,300.00 Operating costs excluding depreciation 3,026.00 EBITDA
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
Sales $4,300.00
Operating costs excluding depreciation 3,026.00
EBITDA $1,274.00
Depreciation 330.00
EBIT $944.00
Interest 150.00
EBT $794.00
Taxes (40%) 317.60
Net income $476.40
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, will equal 80% 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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