Reference no: EM133073939

Question - Oakmont Corporation reported the following 2017 income statement (in millions) -

Sales $1,725.4

Cost of goods sold 970.3

Gross profit 755.1

Selling, general and administrative 313.4

R&D expenses 53.2

Other expenses, net 21.7

Operating profit 366.8

Interest expense 78.3

Income before taxes $288.5

Forecast the 2018 income statement for Oakmont Corporation assuming a 3% increase in net sales, a 35% effective tax rate, and a continuation of the 2017 gross profit margin and percentage relation to net sales for each of the other expenses except for interest expense which will remain the same.