Question

In: Finance

Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in...

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 $

Solutions

Expert Solution


Related Solutions

Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in...
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,290.00 Operating costs (excluding depreciation) 3,058.00 EBITDA $1,232.00 Depreciation 345.00 EBIT $887.00 Interest 130.00 EBT $757.00 Taxes (40%) 302.80 Net income $454.20 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 5% higher than $4.29 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to increase...
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in...
Quantitative Problem: At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,100.00 Operating costs excluding depreciation 3,011.00 EBITDA $1,089.00 Depreciation 300.00 EBIT $789.00 Interest 150.00 EBT $639.00 Taxes (40%) 255.60 Net income $383.40 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.1 billion in sales generated last year. Year-end operating costs, excluding depreciation, will equal 60% of...
At the end of last year, Edwin Inc. reported the following income statement (in millions of...
At the end of last year, Edwin Inc. reported the following income statement (in millions of dollars): Sales $4,190.00 Operating costs (excluding depreciation) 3,048.00 EBITDA $1,142.00 Depreciation 325.00 EBIT $817.00 Interest 150.00 EBT $667.00 Taxes (25%) 166.75 Net income $500.25 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 6% higher than $4.19 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to increase at the...
At the end of last year, Roberts Inc. reported the following income statement (in millions of...
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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 5% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 80%...
eBook At the end of last year, Roberts Inc. reported the following income statement (in millions...
eBook 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 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 11% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal...
The net income reported on the income statement of CamilloX Inc. for the current year was...
The net income reported on the income statement of CamilloX Inc. for the current year was $150,000. Depreciation recorded on equipment and building amounted to $45,000 for the year.  Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Account End of Year Beginning of Year Cash 42,875 36,250 Trade Receivables (net) 147,500 137,500 Inventories 109,375 93,750 Prepaid Expenses 9,250 11,875 Accounts Payable 57,000 40,000 Salaries Payable 7,625 10,625 Dividends Payable...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement   Sales $ 565,200   Costs of goods sold 274,025   Selling & administrative 124,733     Depreciation 54,576   EBIT $ 111,866   Interest 19,296     EBT $ 92,570   Taxes 48,137   Net income $   44,433     Dividends $ 9,600   Addition to retained earnings $ 34,833 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018   Cash $ 13,320    Accounts payable $ 9,504   Accounts receivable 18,994    Notes payable 14,508   Inventory 13,794    Current liabilities...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2016 Income Statement...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2016 Income Statement Sales $ 568,700 Costs of goods sold 273,990 Selling and administrative 124,726 Depreciation 54,569 EBIT $ 115,415 Interest 19,450 EBT $ 95,965 Taxes 38,386 Net income $ 57,579 Dividends $ 10,300 Addition to retained earnings $ 47,279 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 Cash $ 13,390 Accounts payable $ 9,497 Accounts receivable 18,987 Notes payable 14,501 Inventory 13,801 Current liabilities...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement   Sales $ 573,200   Costs of goods sold 273,945   Selling & administrative 124,717     Depreciation 54,560   EBIT $ 119,978   Interest 19,648     EBT $ 100,330   Taxes 40,132   Net income $   60,198     Dividends $ 11,200   Addition to retained earnings $ 48,998 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018   Cash $ 13,480    Accounts payable $ 9,488   Accounts receivable 18,978    Notes payable 14,492   Inventory 13,810    Current liabilities...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement...
Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement   Sales $ 573,200   Costs of goods sold 273,945   Selling & administrative 124,717     Depreciation 54,560   EBIT $ 119,978   Interest 19,648     EBT $ 100,330   Taxes 40,132   Net income $   60,198     Dividends $ 11,200   Addition to retained earnings $ 48,998 GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018   Cash $ 13,480    Accounts payable $ 9,488   Accounts receivable 18,978    Notes payable 14,492   Inventory 13,810    Current liabilities...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT