At the end of last year, Edwin Inc reported the following income statement (in millions of dollars) Sales$4,120 00Operating costs (excluding depreciation)3,099 00EBITDA$1,021 00Depreciation340 00EBIT$681 00Interest140 00EBT$541 00Taxes (25 )135 25Net income$405 75 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 12 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 On the basis of this information, what will be the forecast for Edwin's year end net income Enter your answers as positive values Enter your answers in millions For example, an answer of $10,550,000 should be entered as 10 55 Do not round intermediate calculations Round your answers to two decimal places Edwin Inc Income Statement (in millions of dollars)Sales$ Operating costs (excluding depreciation) EBITDA$ Depreciation EBIT$ Interest EBT$ Taxes (25 ) Net income$

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales$4,120.00Operating costs (excluding depreciation)3,099.00EBITDA$1,021.00Depreciation340.00EBIT$681.00Interest140.00EBT$541.00Taxes (25%)135.25Net income$405.75 Looking ahead

At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):

Sales$4,120.00Operating costs (excluding depreciation)3,099.00EBITDA$1,021.00Depreciation340.00EBIT$681.00Interest140.00EBT$541.00Taxes (25%)135.25Net income$405.75

Looking ahead to the following year, the company's CFO has assembled this information:

Year-end sales are expected to be 6% higher than $4.12 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%.

On the basis of this information, what will be the forecast for Edwin's year-end net income? Enter your answers as positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.

Edwin Inc. Income Statement (in millions of dollars)Sales$ Operating costs (excluding depreciation) EBITDA$ Depreciation EBIT$ Interest EBT$ Taxes (25%) Net income$