Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. quantitative problem: at the end of last year, edw

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

80.2K

Verified Solution

Question

Finance

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 3,010.00
EBITDA $1,090.00
Depreciation 350.00
EBIT $740.00
Interest 170.00
EBT $570.00
Taxes (40%) 228.00
Net income $342.00

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 70% of sales.

Depreciation costs are 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 this information, what will be the forecast for Edwin's year-end net income? Enter your answers in millions. Round your answers to two decimal places. Do not round intermediate calculations. Enter all values as positive numbers.

image

in millions of dallans) Operating costs excluding depreciation EBITDA Depreciation EBIT Interest EBT Taxes Net income

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