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:
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 $25,000,000 should be entered as 25. Round your answer to two decimal places.
$ million
According to the information given. the calculations are done below:
This Year | Projected | Calculation | |
Sales | 3000 | 3210 | 1.07*3000 |
Operating costs excluding depreciation | 2,450 | 2728.5 | 85%*3210 |
EBITDA | 550 | 481.5 | Sales - Operating cost |
Depreciation | 250 | 267.5 | 250*1.07 |
EBIT | 300 | 214 | EBITDA - Depreciation |
Interest | 125 | 125 | remains same |
EBT | 175 | 89 | 214-125 |
Taxes (40%) | 70 | 35.60 | 40%*89 |
Net income | 105 | 53.40 | 89-35.6 |
Projected Net Income would be $53.40 million
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 8% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 70%...
Pro Forma Income Statement At the end of last year, Roberts Inc.
reported the following income statement (in millions of
dollars):
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% of year-end sales.
Depreciation is expected to increase at the same rate as
sales.
Interest costs are expected to...
5. Problem 17.07 (Pro Forma Income Statement) eBook At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars): $3,000 2,450 Sales Operating costs excluding depreciation EBITDA Depreciation $550 250 EBIT Interest $300 125 $175 70 EBT Taxes (40%) Net income $105 Looking ahead to the following year, the company's CFO has assembled this information: • Year-end sales are expected to be 9% higher than the $3 billion in sales generated last year. •...
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