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Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,150.00 Operating Costs excluding depreciation

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

Sales $4,150.00
Operating Costs excluding depreciation $3,085.00
EBITDA $1,065.00
Depreciation 340.00
EBIT 725.00
Interest 130.00
EBT 595.00
Taxes (40%) 238.00
Net Income 357.00

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

  • Year-end sales are expected to be 6% higher than $4.15 billion in sales generated last year.
  • Year-end operating costs, excluding depreciation, will equal 60% 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. Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers.

Sales $
Operating costs excluding depreciation
EBITDA $
Depreciation
EBIT $
Interest
EBT $
Taxes
Net income $

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