In: Finance
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,150 Operating costs excluding depreciation 3,055 EBITDA $1,095 Depreciation 305 EBIT $790 Interest 160 EBT $630 Taxes (40%) 252 Net income $378 Looking ahead to the following year, the company's CFO has assembled this information: •Year-end sales are expected to be 5% higher than $4.15 billion in sales generated last year. •Year-end operating costs, including depreciation, are expected to increase at the same rates as sales. •Interest costs are expected to remain unchanged. •The tax rate is expected to remain at 40%. On the basis of this information, what will be the forecast for Edwin's year-end net income? Round your answer to the nearest whole million. Do not round intermediate calculations. Enter all values as positive numbers. (in millions of dollars) Sales $ Operating costs including depreciation EBITDA $ Depreciation EBIT $ Interest EBT $ Taxes Net income $