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What will be the forecast for robert''s year-end net income

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Question - 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 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 the following information:

  • Year-end sales are expected to be 10 percent higher than the $3 billion in sales generated last year.
  • Year-end operating costs, excluding depreciation, are expected to equal 80 percent 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 40 percent.

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

Reference no: EM131754653

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