Reference no: EM132806216

Problem - 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 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 remain unchanged.

The tax rate is expected to remain at 40%.

On the basis of that information, what will be the forecast for Roberts' year-end net income?