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Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation 3,013.00 $1,087.00 EBITDA 300.00 Depreciation EBIT $787.00 Interest 130.00 $657.00 EBT Taxes (40%) 262.80 Net income $394.20 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 4% higher than $4.1 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 BITDA $ Depreciation EBIT $ Interest EBT $ Taxes Net income
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