PRO FORMA INCOME STATEMENT 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 125
EBT $ 175
Taxes (40%) 70
Net income $ 105

Looking ahead to the following year, the company’s CFO has assembled this information:

Year-end sales are expected to be 10% higher than the $3 billion in sales generated last year.
Year-end operating costs, excluding depreciation, are expected to equal 80% 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 40%.

On the basis of that information, what will be the forecast for Roberts’ year-end net income?

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Posted on May 26, 2016Author TutorCategories Question, Questions