Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Pro forma income statement at the end of last year, Roberts Inc. reported the given income statement [in millions of dollars]:

Sales

$3,000

Operating costs excluding depreciation

  2,450

EBITDA

   $550

Depreciation

     250

EBIT

   $300

Interest

     125

EBT

   $175

Taxes (40%)

      70

Net income

   $105

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

Year-end sales are expected to be 10% higher than the 3 billion dollar in sales generated last year.

Year-end operating costs, excluding depreciation, are expected to equal 80% of year-end sales.

Depreciation is expected to rise 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 Robert's year-end net income?

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919906

Have any Question? 


Related Questions in Basic Finance

This week find the statement of cash flow for a firm of

This week, find the statement of cash flow for a firm of your choosing and report the cash flow ratios. Please report and discuss 3 years of ratios for the three ratios related to debt and dividends but only the current ...

What is meant by break even drivers identify two important

What is meant by break even drivers? Identify two important drivers affecting the amount of revenues needed for ventures to break even Explain

What primary factors determine the number of load cycles

What primary factors determine the number of load cycles required to break a bolt subject to fatigue loading? Describe the appearance of the break surface of a bolt which has failed in fatigue ? Where on a bolt are you m ...

What is the expected relationship between dividend payout

What is the expected relationship between dividend payout levels and the growth rate and availability of positive-NPV projects, under the agency cost model of dividends? What about the expected relationship between divid ...

Imagine that you are a participant in a research study for

Imagine that you are a participant in a research study. For each of the following scenarios, describe how you would probably react, and explain how your reactivity would influence your responses. a. A researcher tells yo ...

Consider a borrowing arrangement in which the annual

Consider a borrowing arrangement in which the annual percentage rate (APR) is 8%. a. Under what conditions does the effective annual rate of interest (EAR) differ from the APR of 8%? b. As the frequency of compounding in ...

What main effects and interaction could you test with the

What main effects and interaction could you test with the design you developed for Question 3? Are you predicting that you will obtain an interaction? Question 1 Build on the design you created in Question 1 to test the ...

Each of the following research studies uses a survey as a

Each of the following research studies uses a survey as a method for collecting data. However, not all of the studies are examples of the survey research design. Based on the information provided for each study, indicate ...

The wealth transfer decisionnbspplease respond to the

"The Wealth Transfer Decision" Please respond to the following: Imagine that you are an estate planner and a friend is seeking advice regarding leaving property to his children. He has accumulated approximately $1 millio ...

1 profits might be compared with sales assets or

1. Profits might be compared with sales, assets, or stockholders' equity. Why might all three bases be used? Will trends in these ratios always move in the same direction? 2. What is the advantage of segregating extraord ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro