Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars):
Sales | $4,140.00 |
Operating costs (excluding depreciation) | 3,055.00 |
EBITDA | $1,085.00 |
Depreciation | 305.00 |
EBIT | $780.00 |
Interest | 170.00 |
EBT | $610.00 |
Taxes (25%) | 152.50 |
Net income | $457.50 |
Looking ahead to the following year, the company's CFO has assembled this information:
On the basis of this information, what will be the forecast for Edwin's year-end net income? Enter your answers as positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.
Edwin Inc. Income Statement |
|
(in millions of dollars) | |
Sales | $ |
Operating costs (excluding depreciation) | |
EBITDA | $ |
Depreciation | |
EBIT | $ |
Interest | |
EBT | $ |
Taxes (25%) | |
Net income | $ |
Income statement forecast for the year-end
Increase in sales = $4,140 million * 5% = $207 million
Sales forecast for the year end = $4,347 million
Increase in Operating Costs excluding depreciation = $3,055 million * 5% = $152.75 million
Operating costs excluding depreciation forecast = $3,207.75 million
Increase in depreciation = $305 million *5% =$15.25 million
Depreciation forecast = $320.25 million
Interest remain same as $170 million
Tax rate remain same as 25%
Therefore, tax = EBT * 25% = $649 million*25%= $162.25 million
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 $4,120.00 Operating costs (excluding depreciation) 3,003.00 EBITDA $1,117.00 Depreciation 310.00 EBIT $807.00 Interest 160.00 EBT $647.00 Taxes (25%) 161.75 Net income $485.25 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.12 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to increase...
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At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation 3,008.00 EBITDA $1,092.00 Depreciation 340.00 EBIT $752.00 Interest 130.00 EBT $622.00 Taxes (40%) 248.80 Net income $373.20 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 4% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 70% of sales. Depreciation...
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