Hey, can you please solve this :) Thank you!! Quantitative Problem: At the end o

Question

Hey, can you please solve this :) Thank you!!

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

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

Year-end sales are expected to be 6% higher than $4.27 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? Round your answer to the nearest whole million. Do not round intermediate calculations. Enter all values as positive numbers.

Sales $4,270 Operating costs excluding depreciation 3,083 EBITDA $1,187 Depreciation 335 EBIT $852 Interest 130 EBT $722 Taxes (40%) 289 Net income $433

Explanation / Answer

Particulars Amount Projected Sales 4270            4,526 Operating costs excluding depreciation 3083            3,168 EBITDA 1187            1,358 Depreciation 335                355 EBIT 852            1,003 Interest 130                130 EBT 722                873 Taxes (40%) 289                349 Net income 433                524

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