Q1) Pro forma income statement at the end of last year, Roberts Inc. Reported income statement given below (in millions of dollars):
|Operating costs excluding depreciation
Looking ahead to following year, company's CFO has assembled following information:
1.Year-end sales are expected to be 10 percent higher than $3 billion in sales generated last year.
2.Year-end operating costs, excluding depreciation, are expected to equal 80 percent of year-end sales
3. Depreciation is expected to raise at the same rate as sales
4. Interest costs are expected to remain anmodified.
5. Tax rate is expected to remain at 40 percent.
On the basis of this information, determine predict for Robert's year-end net income?