Q1) At the end of last year, Roberts Inc. reported following income statement (in millions of dollars):
|Operating costs excluding depreciation
|Taxes (40 %)
Looking ahead to following year, company's CFO has assembled following information:
Year-End sales are expected to be 10 percent higher than $3billion 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 same rate as sales.
Interest costs are expected to remain unchanged.
Tax rate is expected to remain at 40 %.
On basis of this information, determine the forecast for Roberts' year-end net income?