Quantitative Problem: Jasper Jewelry has $130 million in sales. The company expects that its sales will increase 4% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows:

Inventories = $10 + 0.09(Sales)

Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory level? Round your answer to two decimal places. Do not round intermediate calculations. $--------- million

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

Sales	$4,100
Operating costs excluding depreciation	3,008
EBITDA	$1,092
Depreciation	300
EBIT	$792
Interest	140
EBT	$652
Taxes (40%)	261
Net income	$391

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, including depreciation, are expected to increase at the same rates 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 answer to the nearest whole million. Do not round intermediate calculations. Enter all values as positive numbers.

EBITDA

$ ---------

EBIT	$ -----
Interest -----------
EBT	$ -----
Taxes -------------
Net income	$--------