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At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,180.00 Operating costs (excluding depreciation) 3,087.00 EBITDA
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
Sales | $4,180.00 |
Operating costs (excluding depreciation) | 3,087.00 |
EBITDA | $1,093.00 |
Depreciation | 320.00 |
EBIT | $773.00 |
Interest | 160.00 |
EBT | $613.00 |
Taxes (40%) | 245.20 |
Net income | $367.80 |
Looking ahead to the following year, the company's CFO has assembled this information:
- Year-end sales are expected to be 5% higher than $4.18 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 40%.
On the basis of this information, what will be the forecast for Edwin's year-end net income? Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers.
(in millions of dollars) | |
Sales | $ |
Operating costs (excluding depreciation) | |
EBITDA | $ |
Depreciation | |
EBIT | $ |
Interest | |
EBT | $ |
Taxes | |
Net income | $ |
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