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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

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