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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 3,015.00 EBITDA $1,085.00 Depreciation 310.00 EBIT $775.00 Interest 140.00 EBT $635.00 Taxes (40%) 254.00 Net income $381.00 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 70% 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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