Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. check my work (3 remaining) ebook at the end of la

Check My Work (3 remaining) eBook At the end of last year, Roberts Inc. reported...

60.1K

Verified Solution

Question

Accounting

image

Check My Work (3 remaining) 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 $550 EBITDA Depreciation 250 $300 EBIT Interest 124 $176 EBT 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 15% higher than the $3 billion in sales generated last year. 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 25%. On the basis of that information, what will be the forecast for Roberts' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places. million Check My Work (3 remaining) D= Icon Key Question 1 of 11

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students