westcengagenow.com/ilm takeAssignment /takeAssignmentMain.do eBook Problem 17-7
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westcengagenow.com/ilm takeAssignment /takeAssignmentMain.do eBook Problem 17-7 Pro forma income staternent At the end of last year, Roberts Inc. reported the following income statement (in millions of dollars): Sales Operating costs exduding depreciation 24S0 EBITDA Depreciation EBIT Interest EBT Taxes (40%) Net income Looking ahead to the following year, the company's CFO has assembled this information ·Year-end sales are expected to be 13% higher than the $3 billion in sales generated last year 3,000 $550 250 $300 125 $175 70 $105 Year-end operating costs excluding depreciation are expected to equal 85% 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? Enter your answer in milions. For example, an answer of $25,000,000 should be entered as 25 Round your answer to two decimal places. million Check My work (2 remainin Problem 17.07Explanation / Answer
pro forma income statement
Sales $ 3,300(3000*110%)
operating costs excluding depreciation 2,640(3300*80/100)
EBITDA $ 660
Depreciation $ 275(250*110/100)
EBIT $385
interest $ 125
EBT $ 260
Taxes(40%) $ 104
NET INCOME $ 156
Robert's net income is $156 Million.
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