Question
At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars): Sales$3,000 Operating costs excluding depreciation2,450 EBITDA$550 Depreciation250 EBIT$300
At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):
Sales$3,000
Operating costs excluding depreciation2,450
EBITDA$550
Depreciation250
EBIT$300
Interest124
EBT$176
taxes (25%)44
Net income$132
Looking ahead to the following year, the company's CFO has assembled this information:
- Year-end sales are expected to be 12% higher than the $3 billion in sales generated last year.
- Year-end operating costs, excluding depreciation, are expected to equal 80% of year-end sales.
- Depreciation is 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 that information, what will be the forecast for Roberts' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places.
$ million
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