What will be the forecast for robert year end income

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Pro forma income statement At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars):
Sales ...................$3,000
Operating cost excluding depreciation ......$2,400
EBITDA .................$500
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:

A) Year-end sales are expected to be 10 percent higher than the $3 billion in sales generated last year.
B) Year-end operating costs, excluding depreciation, are expected to equal 80 percent of year-end sales.
C) Depreciation is expected to increase at the same rate as sales.
D) Interest costs are expected to remain unchanged.
E) The tax rate is expected to remain at 40 percent.

On the basis of this information, what will be the forecast for Robert's year-end income?

Reference no: EM13971576

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