Question about Proforma Income Statement
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At the end of last year, Roberts Inc. reported the following 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 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 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 Roberts' year-end net income?
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At the end of last year, Roberts Inc. reported the following 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 ...
Purchase this Solution
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