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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 $
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jeff jeffy answered 6 months agoRelated 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...
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