Question

6.  Problem 16.07 (Pro Forma Income Statement) eBook At the end of last year, Roberts Inc. reported...

6.  Problem 16.07 (Pro Forma Income Statement)

eBook

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 124
EBT $176
Taxes (25%) 44
Net income $132

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

  • Year-end sales are expected to be 14% higher than the $3 billion in sales generated last year.
  • Year-end operating costs, excluding depreciation, are expected to equal 85% 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 25%.

On the basis of that information, what will be the forecast for Roberts' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places.

$ = million
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 15% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 75%...
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this 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%...
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 this 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 70%...
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 this information: Year-end sales are expected to be 11% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 75%...
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 this information: Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 80%...
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in...
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,150.00 Operating costs excluding depreciation 3,052.00 EBITDA $1,098.00 Depreciation 320.00 EBIT $778.00 Interest 140.00 EBT $638.00 Taxes (40%) 255.20 Net income $382.80 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.15 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 80% of...
4.  Problem 16.04 (Pro Forma Income Statement) eBook Austin Grocers recently reported the following 2019 income statement...
4.  Problem 16.04 (Pro Forma Income Statement) eBook Austin Grocers recently reported the following 2019 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (25%) 40 Net income $120 Dividends $40 Addition to retained earnings $80 For the coming year, the company is forecasting a 30% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 25% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of...
PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 65% of sales. Austin's tax rate, interest expense, and dividend payout ratio...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT